He also signalled that the SEC is watching crypto-cash closely, saying that "just as the SEC has a sharp focus on how USA dollar, euro and Japanese yen transactions affect our securities markets, we have the same interests and responsibilities with respect to cryptocurrencies". Regulators in Canada, the US and elsewhere have warned that offerings may come under securities law, depending on the specific details of the offering, and whether the virtual tokens and coins being issued qualify as securities. "Said another way, replacing a traditional corporate interest recorded in a central ledger with an enterprise interest recorded through a blockchain entry on a distributed ledger may change the form of the transaction, but it does not change the substance".
U.S. identity verification firm Civic raised $33m (£26m) this year, while blockchain technology firms Bancor and Tezos raised more than $350m.
Stephanie Avakian, co-director of the SEC's enforcement division, said: "We will continue to scrutinise the market vigilantly for improper offerings that seek to sell securities to the general public without the required registration or exemption".
Munchee had been seeking to raise $15m to create an "ecosystem" where Munchee and others could buy and sell goods and services using the tokens.
"As with any other type of potential investment, if a promoter guarantees returns, if an opportunity sounds too good to be true, or if you are pressured to act quickly, please exercise extreme caution and be aware of the risk that your investment may be lost", the SEC said.
Munchee agreed to the SEC's order without admitting or denying the SEC's findings.
Bitcoin is unregulated by any governing body, but the SEC believes initial bitcoin offerings may be in violation of federal securities laws.
While the statement makes clear that the SEC views the cryptocurrency market as falling under its purview, it remains much more laissez-faire about enforcement than other regulators have been. In September, the commission brought fraud charges against the company responsible for two ICOs - REcoin and DRC World - alleging the firm had misled investors.
In the United Kingdom, the Financial Conduct Authority said in September that investors could lose their entire stake in high-risk digital token investments.
The SEC is offering some of its most extensive guidance to investors and Wall Street on how to handle the manic craze surrounding cryptocurrencies - warning traders that digital currency will be policed like old-fashioned currency as it grows more mainstream.