🏛 Two token issuers settle SEC charges, agree to register tokens as securities

The U.S. Securities and Exchange Commission (SEC) has announced that two token projects, CarrierEQ Inc. (Airfox) and Paragon Coin Inc., have settled registration charges with the regulator and will register their tokens as securities. The SEC noted that both projects conducted token sales following the release of the DAO Report which warned projects that some tokens could be considered securities. The orders impose $250,000 penalties against each company and include undertakings to compensate harmed investors who purchased tokens in the offerings. Both companies will also be required to register their tokens as securities and file periodic reports for at least one year.