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
You May Also Like
Can regulation stop the fall in cryptocurrency prices?
Bitcoin's bear year has had better days, with the token's price down more than 8% and currently sitting at $3,989.94 on cryptocurrency exchange Bitstamp. According to an article published in The Week on November 26, 2018, the adoption of proper regulation would help the cryptocurrency recover from the prolonged Black Friday.
The SEC accounts for 30% of cases related to claims against crypto platforms
An unexpected fact about the cryptocurrency industry - despite the bearish market trend, business for digital asset lawyers is booming. Forty-five cryptocurrency-related lawsuits were filed in the first half of this year, according to research firm Diar.
