Another series of high-profile hacks resulting in the theft of tens of millions of dollars of investor money has brought initial coin offerings (ICOs) to the fore again in recent weeks. Now the SEC is claiming jurisdiction over the most hyped investment trend in recent history – and not a minute too soon. The previously lawless world of ICOs could be on its way to being tamed, but other regulators across the world must first take action.

ICOs have become a popular, yet controversial, method for cryptocurrency and blockchain-related startups to raise capital. Whether they trade from their bedroom or the trading floor, investors are offered no protection under current regulation, yet companies are often hauling in the digital equivalent of many millions of dollars in their ICO fundraising rounds.