SEC Not Changing Securities Rules to Accommodate ICOs
Jay Clayton, the SEC Chief, refuses to amend the regulatory frameworks for initial coin offerings (ICO). The regulations for Bitcoin and its working stays the same. However, Clayton answers to questions regarding ICOs with a strong declination.
According to a CNBC interview, the chief of SEC says that the SEC will not be making any special allowances for the ICOs or on tokens representing a part of a project, as most of the ICOs are selling securities.
To make himself clear, he explained that there was a difference in the initial coin offerings (ICO) and in Bitcoins. Bitcoins are essentially currencies, and they can be used to initiate and fulfill transactions just as currencies will do. In other words, Bitcoins are not securities or instruments of investment as ICOs are. Bitcoins replace Dollars, Euros, Yen, or whatever currency there may be without changing anything.
Clayton further adds that any currency that acts as an instrument for investment or can be used as security will be regulated as per other securities that are being regulated by SEC. This decision has changed many things in the American marketplace as well as in global marketplaces.
Furthermore, the SEC chief added, “If you have an ICO or 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 see us. File financial statements, file disclosure, take the responsibility our laws require.”
Now all companies offering ICOs or IPOs (initial public offerings) in cryptocurrencies will have to register themselves and get a license for their work. According to Clayton anything that earns you return, can be sold for a return or can be used as an investment opportunity, is what SEC regulates and ICOs are the same things.
Apart from this, during the interview, the SEC chief gave clear and well-defined answers. However, he remains silent on the topic of altcoins and is they also considered as securities?
Clayton concluded the interview with by stating that the SEC has been doing their work for a long time and will decide on certain matters under the right circumstances with the correct facts.