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News Bytes for May 2, 2018

Welcome to News Bytes with BlockExplorer, your daily cryptocurrency news roundup. Today we will discuss top auto manufacturers forming a blockchain coalition, the SEC urging caution on ICOs, Australia cracking down on ICOs, Ethereum being under regulatory scrutiny, and Bitcoin being a contender to replace cash payments.

BMW, Ford, GM and Renault Form Blockchain Coalition

Four of the largest car manufacturers have formed a consortium focused on applying blockchain tech in the automotive sector. The Mobility Open Blockchain Initiative (MOBI) launched with the fairly broad goal of making transportation “safer, more affordable, and more widely accessible using blockchain technology.”

Top SEC Enforcement Official Urges Caution on ICOs

A top SEC enforcement official, speaking at a conference in New York on “The Future of Financial Fraud”, said some ICOs could be putting investors at risk. “They’re raising a lot of money, but they’re not complying with the rules that are in place to protect investors,” says Valerie Szczepanik, SEC assistant director of enforcement.

Australian Securities and Investments Commission Cracks Down on ICOs

ASIC is investigating misleading or deceptive conduct in the selling of cryptocurrencies. “If you are acting with someone else’s money, or selling something to someone, you have obligations,” ASIC Commissioner John Price said.

Ethereum Falls Under Regulatory Scrutiny

Ethereum fell 6 percent yesterday after The Wall Street Journal reported it has come under scrutiny by regulators. The cryptocurrency’s creation in 2014 was “probably an illegal securities sale” in the eyes of some regulators, The Wall Street Journal reports, citing people familiar with the story.

St. Louis Federal Reserve Bank: Bitcoin Could Be a Contender to Replace Cash Payments

Bitcoin could eventually become a contender to replace government-issued fiat money as a means of payment as it rapidly drives out the use of cash, according to a report from the St. Louis Federal Reserve Bank.