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SEC Chairman, Jay Clayton, speaks on Bitcoin and Cryptocurrencies, stating of it not being a Security


SEC Chairman, Jay Clayton, speaks on Bitcoin and Cryptocurrencies, stating of it not being a Security

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There has been a number of regulatory questions and chaos prevailing in the U.S. for some time now regarding the cryptocurrency and related ICOs regulation. To address this, The Chairman of Securities and Exchange Commission of U.S., Jay Clayton spoke for Bitcoin and cryptocurrencies as a whole in a House Committee on Appropriations meeting and followed by the Interview of CNBC.

Clayton remarked:

“Cryptocurrencies: These are replacements for sovereign currencies, replace the dollar, the euro, the yen with bitcoin. That type of currency is not a security.”

When the question was raised for the ICOs to be sold as Securities, Clayton immediately answered to it saying:

SEC won’t support changing the definition of a security to support the ICO community, as they are not “going to do any violence to the traditional definition of a security which has worked well for a long time.”

Whereas, for other altcoins or cryptocurrencies, there was no subjective clarification which clearly indicates that SEC does not see Bitcoin or any other cryptocurrency(presently) as a Security and also has no plans to accommodate the ICOs or other tokens in the definition of Security.

“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.”

Clayton also added:

“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 any IPO with a token, come see us. File financial statements, file disclosure, take the responsibility our laws require,”

Hence, This will require the exchanges to register themselves for dealing in such tokens and ICOs will have to be licensed by the SEC.

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