The US Securities and Exchange Commission (SEC) issued new warnings against the IEO on Tuesday. The notice states that IEO is similar to an ICO and that the agency has been investigating many unregistered securities offerings over the past few years. The SEC says that although IEO providers may claim that their sales are different from ICOs, they may still violate federal securities laws. Therefore, the agency warns investors to be "cautious" if they are considering investing in IEO. The notice states: "IEOs are touted as an innovation in ICOs because they are provided directly by online trading platforms on behalf of the business, usually for a fee, to provide instant trading opportunities for digital assets." These online trading platforms typically do not Registered with the SEC in the United States, they may inappropriately call themselves "exchanges," or they may claim to have performed due diligence or other quality assessments of the IEO. The SEC warns that a platform that claims to be registered does not necessarily mean that it is actually registered with the agency, emphasizing "there is no SEC-approved IEO".