If you\'re an American company and the word Blockchain suddenly appears in your business name, you could be in for a hard time. The US Securities and Exchange Commission (SEC) will be monitoring these companies closely, said Chairman Jay Clayton on Monday, Jan, 22.

Since the bitcoin boom of 2017, it has been possible for companies to make a quick profit while also increasing the publicity around their operations by changing their name so it includes the word \'Blockchain\'. For example, the Long Island Iced Tea Corp changed its name to The Long Island Blockchain Corp, and this resulted in a massive increase in the company\'s stock price.

It remains to be seen if any of these companies actually have anything to do with Blockchain and related technologies and if they do not, it is difficult to think of a reason why they would want to rename themselves, apart from as a way to make some quick capital. The SEC will be looking at companies who do this, and have no track record of commercial activity involving Blockchain. They will also look at businesses that provided securities without telling investors about the associated risks.

UK telecoms company Stapleton Capital became Blockchain Worldwide this week and saw a short-lived 130% rise in their stock which levelled out to around 45% on the same day. The SEC is now keen to clamp down on any potential copycats.