The SEC is going to develop recommendations regarding ICOs

The SEC is going to develop recommendations regarding ICOs

The US Securities and Exchange Commission (SEC) has decided to clarify in what cases cryptocurrencies should be considered securities.

Speaking at a conference on the development of the fintech sector, SEC Director of the Division of Corporate Finance William Hinman said that the Commission intends to publish guidelines for developers to rely on when planning to conduct token offerings. These guidelines will help developers independently determine whether their ICO is a securities offering.

We want to adopt a simple and clear document that can be used to determine whether a token offering is a security offering.

If after reading the guidelines While developers may still be unsure whether their tokens are securities, they will be able to contact the SEC's special office by telephone to obtain additional information about securities and securities offerings.

Issues considered by the SEC include the accounting, custody and valuation of tokens. The guidance will also address secondary market transactions to provide clarity to developers and entrepreneurs about how the SEC will view post-IPO tokens.

Back in July 2017, the SEC released its report on DAO, a now-defunct token that the commission recognized as a security and which operated on the Ethereum blockchain. The commission stated that securities laws should apply to the sale of such tokens. At the same time, in June, Hinman himself stated that, in his opinion, ether - the cryptocurrency of the Ethereum network - is not a security.

According to coindesk.com

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