5 important facts according to SEC which crypto investors should know
You for certain already heard about people who or mortgaged the houses and grew rich, or lost all the savings, investing in cryptocurrency. Naturally, occasionally destructive properties of digital currencies drew the attention of the American Securities and Exchange Commission (SEC) which, strangely enough, is what to tell on this matter.
5 things which are important for knowing
As marked in NASDAQ, the chairman of Securities and Exchange Commission Jay Clayton shared recently the thoughts of the crypto industry proceeding from which it is possible to select 5 important facts according to SEC which crypto investors shall know.
1. In SEC there are no registered ICO
Now in SEC is not present and registration of any Initial coin offering (ICO) is not planned. Clayton marks:
“Investors shall understand that so far in SEC any ICO was not registered. The commission does not locate dates of approval for listing and trade in any exchange goods (such as ETF) having cryptocurrency assets”.
2. SEC cannot always help
The nonadjustable market of cryptocurrency knows no limit and is not subject to official jurisdiction. Thus, regulators of the USA are restricted in the actions.
If the exchange which you use was cracked, or the command which launched ICO in which you invested runs with funds from investors, there is the quite real probability that these means will not return. The chairman explains:
“These markets envelop frontiers, and the considerable volume of trade can happen in systems and on platforms outside the United States. Your invested means can move quickly abroad without your permission. As a result, risks can increase, including the risk that market regulators, such as SEC, will not be able effectively to pursue unfair participants or to return means”.
3. Some tokens of ICO really are securities
There is a popular belief concerning the fact that tokens of ICO are not securities and therefore do not get under the operation of federal laws on securities. However, it not so. Clayton said:
“The commission applied the long-term principles of the legislation on securities to show that another token represents the investment contract and, therefore, is security according to our federal laws on securities”.
4. SEC pursues cryptocurrencies as well as traditional money
Besides, Clayton also assured that the Commission is not going to stop control over digital currencies. Actually, they are going to enhance the attention, considering cryptocurrencies as well as the dominating currencies of the world market — fiat:
“It is obvious that it is similar to how SEC pays special attention to transactions in US dollars, euro, the Japanese yen and their influence on our securities markets, we will track also cryptocurrencies”.
5. SEC has the positive relation to cryptocurrencies
And last, but important is at least: SEC has no serious problems with bitcoin and other cryptocurrencies. Actually, they believe in them and know that they have adherents with Wall Street. Clayton recognizes:
“The technology on which cryptocurrencies and ICO are based can be revolutionary, transforming and increasing efficiency. I am sure that changes in financial technologies will help to simplify capital formation and to give perspective investment opportunities for all types of investors”.