5 Things Investors Should Know, According To U.S. SEC
On Bitcoin News Today Portal have been published U.S. Securities and Exchange Commission (SEC) Chair Jay Clayton shared his thoughts on cryptocurrency in recent months and gave five important points.
- THERE ARE NO SEC-REGISTERED ICOS
Currently, there is no single ICO, who has been registered by the SEC. Clayton says:
Investors should know, that no initial coin offerings (ICOs) have been registered with the SEC. It also has not to date approved for listing and trading any exchange-traded products (such as ETFs) holding cryptocurrencies or other assets related to cryptocurrencies.
- THE SEC CAN’T ALWAYS HAVE YOUR BACK
The cryptocurrency market, which is unregulated, has no borders and is out of official jurisdiction. If the exchange gets hacked or the team behind the ICO runs off into the sunset with investors funds, there is a possibility, that those funds will remain unrecoverable.
These markets span national borders and significant trading may occur on systems and platforms outside the United States. Your invested funds may quickly travel overseas without your knowledge. As a result, risks can be amplified, including the risk that market regulators such as the SEC may not be able to effectively pursue bad actors or recover funds.
- SORRY, BUT SOME ICO TOKENS ARE DEFINITELY SECURITIES
Clayton says:
The Commission applied long-standing securities law principles to demonstrate that a particular token constituted an investment contract and therefore was a security under our federal securities laws.
- THE SEC TREATS CRYPTOS LIKE CURRENCY
Clayton points, that SEC isn’t going to stop monitoring cryptocurrencies. They are going to treat cryptos like global market’s dominant fiat currencies. He thinks, that it is clear, that SEC is focused on how U.S. dollar, euro and Japanases yen transactions affect the security market.
- THE SEC LIKES CRYPTO
Last but not least, the SEC doesn’t have much of a problem with Bitcoin and other cryptocurrencies. In fact, they’re believers — and they know that Wall Street is, too. Clayton admits:
“The technology on which cryptocurrencies and ICOs are based may prove to be disruptive, transformative and efficiency-enhancing. I am confident that developments in fintech will help facilitate capital formation and provide promising investment opportunities for institutional and Main Street investors alike”.
