SEC Chairman Clayton Clarifies Bitcoin Isn’t Flexible Enough For Accommodate ICOs

SEC Chief Jay Clayton has placed many restrictive inquiries to that the SEC won’t be creating special allowances either for tokens likes Bitcoin, that represent the worth of a project or for the bulk of initial coin offerings (IOC), occurring to mention within the interview that the majority ICOs are selling securities.

Clayton Mum on Whether Altcoins Are Currencies or Securities:

Clayton said he would not support the redefining of securities to accommodate for the new technology and refused to comment on specific altcoins as they were or were not securities, but referred the interviewer to his definition anything representing an underlying asset or the value of a project will continue to be considered a security.

While he gave a clear answer to most of the questions, Clayton did not have a set answer for the regulation of projects which started out selling securities but since become decentralized projects with no leadership.

Thats a question is out there and will be answered under specific facts and circumstances, but we have been doing this a long time and there is no need to change our fundamental approach, he terminated.

SEC Won’t Update Securities Framework to Give ICOs Safe Harbor :

Clayton clarified that cryptocurrencies which truly act as currencies used for carrying out transactions such as bitcoin will not be SEC regulated.

Cryptocurrencies are replacements for sovereign currencies, replace the dollar, the euro, the yen with bitcoin,as Clayton said. That type of currency is not a security.

However, any currencies which represent an investment in a venture affecting the value of the token are categorically securities according to Clayton and will be regulated just like any other under SEC jurisdiction. This means big changes in the American and global cryptocurrency markets as exchanges will have to register to deal in those tokens and ICOs or IPOs will have to be licensed by the SEC.

A digital asset where I give you my money and you go off and start a venture, and in return for giving you my money you say you know what, I’m going to give you a return, or you can get a return on the secondary market by selling your token to somebody that is a security, and we regulate that. We regulate the offering of that security, and we regulate the selling of that security. If you have an ICO or a stock, and you want to sell it in a private placement, follow the private placement rules. If you want to do an IPO with a token, come to see us. File financial statements, file disclosure, take the responsibility our laws require.

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