Recently, a group of 15 U.S. lawmakers requested clarification from the Securities and Exchange Commission (SEC) about its position on Initial Coin Offerings (ICOs), specifically with regard to when ICOs should be considered securities sales. The lawmakers' letter expresses concern that the lack of clarity about the SEC's position could drive ICO business out of the U.S. The letter arrives in the wake of a recent report finding that ICOs still appear to be lucrative ventures. According to the report, companies that have conducted ICOs "appear to have already sold as much Ethereum as they raised (in USD terms)." The report also found that ICOs that successfully closed in 2017 generated nearly $727 million in net profits.

Another recently released report found that German ICO investors have suffered losses of nearly 90 percent of their capital – resulting in losses of value even greater than Bitcoin and Ethereum. In South Korea, the chairman of South Korea's National Policy Committee has called for his country's legalization of ICOs and the development of a regulatory framework. The chairman's position is in sharp contrast with efforts of South Korean regulatory bodies that have thus far opposed the legalization of ICOs.

In a recent report on venture capital funding of blockchain projects, research group Diar found that the number of deals involving cryptocurrency startups has nearly doubled since last year and that these startups have raised nearly $3.9 billion as a result of venture capital investment. The report suggests that the surge in deals and venture capital fundraising could be due to the major fluctuations in token values that have occurred over the past year.

For more information about the state of ICOs and startup funding, see the following links:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.