ICOs are not liquidating their ETH treasuries, despite price declines. Yet.

The price of ethereum has dropped to an 18-month low on Tuesday, settling at $135 at 10am ET. While no one is certain what is causing the recent sell-off, one of the underlying catalysts is certainly the SEC’s heightened enforcement action.

[related id=1]Two weeks ago, the SEC charged the founder of EtherDelta, Zachary Coburn, with operating an unregistered national securities exchange that allowed trading of tokens that are securities under federal securities laws. Four days ago, the SEC announced it had settled charges against two companies (Airfox and Paragon) that raised funds through ICOs. As The Block highlighted, the SEC appears to be developing a template for ICO enforcement. It therefore seems reasonable to expect further enforcement action in the near term.