The SEC Chairman Jay Clayton said on 26. April on the question of whether crypto-Assets as the Securities should be classified. Bitcoin is not the case as a pure crypto currency in this category Token, however, as well as Ethereum and Ripple.
In consultation with the Securities and Exchange Commissions (SEC) of 26. April in respect of fiscal year 2019 Chairman Jay Clayton commented on crypto-currencies and ICOs. Initially, Clayton described the progress that the SEC in recent months has made. The increased Budget allowed the expansion of staff to 100 employees. Thus, the SEC is better with the Innovation apart, and the Cyber-security of U.S. citizens.
“Bitcoin is not a Security”
“It is a complicated topic. Because, as you said, there are different types of crypto-Assets. I divide these into two categories. A pure medium of exchange – here is often referred to Bitcoin as a currency replacement is not considered by most as Security.“
In fact, you will find only a few pure crypto-currencies among the Top 20. In addition to Bitcoin (BTC) are probably the only Bitcoin Cash (BCH), Litecoin (LTC) and Monero (XMR). Dash (DASH) with the Masternode System represents a unique case.
Tokens are classified as Securities
Then Chairman Clayton led the second category: Token. A Token is a crypto-Asset for the financing of projects.
“I have already expressed, that there are very few Tokens, until now, I have seen no -not Security. If something can be classified as a Security, we should regulate it as a Security. Our Securities regulation is based on disclosure, and the people should follow and the Information we need.“
Ethereum and Ripple also Securities?
According to the Definition by Jay Clayton Ethereum and Ripple would also be Securities. In the case of Ripple, the company holds more than half of all the XRP. Ethereum on the other hand, financed initially, in the year 2014, by a Pre-Sale. This circumstance is sufficient to ETH classify in the eyes of the SEC as a Security. While the Ethereum network is decentralized since the Launch of””, however, the Pre-Sale problems.
In addition, the plans of the Ethereum project, the consensus algorithm of Proof of Work to Proof of Stake switch. By then, the Securities should be true classification of the SEC.
A group of Silicon Valley heavy-weights tried, apparently unsuccessful, to turn the opinion of the SEC. Finally, a Laissez-symbolizes-Fair-dealing with ICO projects an attractive port of call for many Start-ups. The SEC embarks on a line with former CFTC Chairman Gary Gensler. This was spoken in the last week, also of an arrangement of Ripples and Ethereums as Securities.