On January 14, the U.S. Securities and Exchange Commission (SEC) issued an announcement alerting the risks involved in participating in the IEO. This announcement by the SEC's Office of Investor Education and Advocacy advises investors to “be cautious when considering investing in IEOs”, as promises surrounding such products “may be used improperly by committing false promises in new investment areas” The high returns enticed investors to invest. "The SEC states that" IEO may violate federal securities laws and lack investor protection for registration and tax-exempt securities offerings. "Regarding whether IEOs constitute securities offerings, the SEC states," Like ICOs, IEO issuance may involve the issuance and sale of securities depending on the facts and circumstances of the issuance. This means that IEO may have to comply with the registration requirements applicable to issuance in federal securities laws. In addition, registration means that companies providing digital assets must Provide investors with important information about themselves, their businesses, the digital assets they provide, and the terms of their offerings. "In addition, the announcement includes questions about how to determine whether a platform is a securities platform or a broker-dealer, and whether investors can purchase IEO conducted by overseas companies.