The US Securities and Exchange Commission is been working hard on getting its hands on cryptocurrencies. The organization is coming up with new ways to regulate digital coins in the US, since, according to them, if the cryptocurrency world stays untouched, it will become chaotic and disastrous.
However, in order to regulate such a volatile thing as cryptocurrency, it needs to be classified. First and foremost, the SEC needs to clarify the question of whether digital currencies can be regarded securities.
As for this issue, everything is not as simple as it may seem. The Commissioner Jay Clayton characterized “security” like this:
“A token, a digital asset, where I give you my money and you go off and make a venture…, and in return for me giving you my money, you say, ‘you know what, I’m going to give you a return, or you can get a return in the secondary market by selling your token to somebody.”
In other words, the presence of the third party which awaits for some profits from their investments into a digital asset is the main feature that distinguishes a security. Thus, Bitcoin and Ethereum do not mean the requirements of becoming a real security. Tokens released during the ICOs, howerer, are a completely different thing. The only case when ICO coins are not securities is when they are purchased for personal use to buy some intra-platform goods and services.
We would like to remind you that not all the US companies, activities of which are connected with cryptocurrency, agree with the SEC’s decisions.
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