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The Securities and Exchange Commission [SEC] of the United States of America played a major role in accepting or denying cryptocurrencies in the country. The agency has intervened in several developments and updates, citing regulations and laws that will be a key element to push crypto-currencies such as Bitcoin. [BTC] in the traditional kingdom.
In the latest report released by the SEC, the regulator has talked about the initial offers of coins [ICOs], its rules and procedures as well as the main problem of legitimacy, one of the most recurrent themes in the field of cryptocurrencies. The report begins by indicating:
"Companies and individuals are increasingly looking at initial coin offerings (ICOs) as a way to raise capital or participate in investment opportunities. While these digital badets and the technology behind them can be a new and effective way to conduct financial transactions, they also increase the risk of fraud and manipulation because the markets for these badets are less regulated than the financial markets. traditional.
In the report, the SEC also gave a detailed list of the five things a user needs to know about ICOs. They stated that ICOs could constitute security offerings and fall within the SEC's jurisdiction with respect to the enforcement of federal securities laws. The SEC also added:
"ICOs that are securities should probably be registered with the SEC or are subject to an exemption from registration."
This clause is important because of the SEC's fight with the Bitcoin ETF, launched by the Winklevoss brothers and the VanEck Bitcoin ETF. The VanEck Bitcoin ETF also made headlines recently when they said they had withdrawn from the ETF because they "did not want to fall through the cracks."
The firm said the decision was made because of the closure of the US government. The latest version of the SEC also states that tokens sold in country offices can be called many things. To elucidate:
"ICOs, or more specifically tokens, can be called a variety of names, but simply calling a token a" utility "or structuring it to provide a utility does not prevent the token from being a security. "
The governing body also commented on the security risks related to ICOs. There is a clear reference to the fraudulent nature of some investments while others are honest investment opportunities. According to the SEC:
"They can also pose substantial risks of loss or manipulation, including through hacking, with little recourse for victims after the fact."
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