Bitcoin 鈥榥ot a security鈥�, says SEC chairman 07 June 2018Washington DC Reporter: Jenna Lomax
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Bitcoin is 鈥渘ot a security鈥� and the Securities and Exchange Commission (SEC) will not change the definition of a security for the benefit of cryptocurrencies, according to SEC chairman Jay Clayton.
Clayton said in an interview that the SEC was 鈥渘ot going to do any violence to the traditional definition of 鈥榮ecurity鈥� that has worked for a long time鈥�.
He also said that the SEC would not change its rules for initial coin offerings, underscoring that tokens or digital assets used in that fundraising process are securities.
Nigel Green, founder and CEO of deVere Group said that this was evidence of the cryptocurrency sector becoming 鈥渋ncreasingly mainstream鈥�.
He added that the SEC was giving a 鈥渟teadfast yet proactive approach on bitcoin and other cryptocurrencies鈥�.
鈥淭he SEC is right to insist that the digital coins, such as bitcoin, which are replacement for sovereign currencies, such as the dollar, sterling, yen and euro, are not securities. Similarly, I believe the SEC is also right that the tokens鈥攚hich [Clayton] did not name鈥攖hat act as digital assets are securities.鈥�
鈥淭his clarification by the SEC removes some of the uncertainty that has been swirling around the crypto sector and serves to strengthen the overall proposition of many of the major cryptocurrencies.鈥�
Green concluded: 鈥淭he SEC鈥檚 invaluable and far-sighted work in this area once again highlights how many governments, central banks, and regulators around the world are all now recognising the scale and potential of Bitcoin and other cryptocurrencies.鈥�
鈥淭he SEC鈥檚 clarity will have a positive impact on the cryptocurrency sector. The agency鈥檚 stance will rightly target what needs to be targeted and allow the legitimate digital coins to prosper.鈥�
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