Why is ICO not allowed in US?

As a cryptocurrency and finance expert, I'm often asked the question: Why is Initial Coin Offering (ICO) not allowed in the United States? The answer lies in the regulatory framework and the unique challenges posed by this emerging fundraising method. ICOs involve the issuance of digital tokens, often used to fund new projects, but the US has stringent laws around securities and investment offerings. Since many ICOs share characteristics similar to traditional securities, they are often deemed as unregistered securities offerings, which violate US laws. Furthermore, the anonymous and decentralized nature of cryptocurrency transactions can make it difficult to ensure compliance with anti-money laundering and other financial regulations. Therefore, while ICOs may have the potential to revolutionize funding models, they are currently not permitted in the US without proper regulatory approval.