If you have not lived in the Amazon jungle for the last 4 months, you probably heard stories about all those people who either laid their houses or took loans, losing their savings by investing in crypto-currencies. Naturally, the destructive properties of crypto currency attracted the attention of the US Securities and Exchange Commission (SEC) and it is not at all surprising that the SEC has some opinions on the issue of crypto currency.
5 things you need to know about crypto-loans, kindly provided by SEC
And so, the chairman of the Securities and Exchange Commission (SEC) Jay Clayton shared his thoughts on crypto-currencies. In his opinion, to a large extent, it is necessary to take into account five important points.
1. In the SEC there are no registered ICOs
Currently, the SEC has not registered any proposal for the initial placement of coins (ICO) or the launch of which was announced. Clayton notes:
"Investors should understand that to date no initial coin offers have been registered with the SEC. The SEC also does not have an approval date for the listing and trading of any exchange commodities (such as ETFs) that have crypto or other assets associated with crypto-currencies. "
2. SEC can not always return you
The unregulated market of crypto currency knows no boundaries and is not subject to official jurisdiction. Thus, the US regulatory authorities can not do much. If the exchange that you use is hacked, or the team behind the ICO you invested in escapes with investors' funds, there is a very real possibility that these funds will remain irrecoverable. Clayton explained:
"These markets are not covered by national borders and significant trade can occur on systems and platforms outside the United States. Your invested funds can quickly travel abroad without your knowledge. As a result, risks can be exacerbated, including the risk that market regulators such as the SEC will not be able to effectively prosecute bad players or return funds. "
3. Sorry, but some ICO tokens are definitely securities
There is a common misconception that ICO tokens are not securities and therefore are not subject to federal securities laws. Sometimes it's not. Clayton says:
"The Commission has applied the multi-year principles of securities legislation to demonstrate that a particular token is an investment contract and therefore is a security in accordance with our federal securities laws."
4. SEC considers crypto currency as a currency
In addition, Clayton said that everyone knew that the SEC is not going to stop control over crypto-currencies. In fact, they are going to increase their attention, considering crypto-currencies in the same way as the dominant currencies of the world market:
"It is clear that the SEC also pays special attention to how transactions in US dollars, euros and the Japanese yen, which affect the securities markets, and in relation to the crypto currency."
5. SEC likes crypto currencies
Last but not least, the SEC does not have a big problem with Bitcoin and other crypto-currencies. Clayton admits:
"The technology on which crypto-currencies and ICO are based can be both destructive, and transformative, and increasing efficiency. I am sure that the events in fintech will help to facilitate the formation of capital and provide promising investment opportunities for both institutional investors and investors from the streets. "
Author: Yevgeny Yakubenko, analyst of Freedman Club Crypto News
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