During the US Securities and Exchange Commission and Commodities and Futures Trading Commission senate hearing on February 6 2018, SEC chairman Jay Clayton emphasized that initial coin offerings will be met with tighter regulations, while true cryptocurrencies will be embraced with smart policies. Although most ICOs do not offer equity or a stake in their projects in order to exempt themselves from SEC regulations, if the SEC considers tokens that increase in value based on the performance of Blockchain projects featuring the tokens, then virtually every single ICO can be considered as a security. The ICO space and projects within that industry are likely to face difficulties in conducting token crowdsales due to regulatory conflict with the SEC. Blockchain projects may still be able to conduct ICOs outside of the US, but there remains the possibility that the SEC may target a project with investors based in the US. For many months, the majority of ICOs worldwide have excluded US-based investors from token crowdsales due to the strict SEC regulatory regime. Currently, cryptocurrency regulation differs from state to state and for both small and large-scale cryptocurrency companies.