“To date, not a single ICO (primary placement of tokens), including those that are being prepared for launch, has been registered with the SEC. This means that it will not be possible to regulate such projects. Investors should understand this. Including, the SEC did not approve of listing and trading of any exchange products (such as ETF) or cryptocurrency assets. ”
The US cryptocurrency market (as in principle and in most other countries) is currently not officially regulated at all. Therefore, regulators are very limited in their actions. If the exchange on which you trade cryptocurrency will be hacked or ICO, in which you invest your money, for some reason fails or its team disappears with all the money, then with high probability we can say that money is lost forever. This is how Clayton explained it.
“The cryptocurrency market is completely international. Trading can occur on platforms that are outside the United States. Your funds can be moved across the border without your knowledge. That is why the risk that regulators, including the SEC “, increases
Many people mistakenly believe that ICO tokens are not subject to federal securities laws because they are not securities. However, this is not the case. And that’s what Clayton says on that score.
“The tokens that the project issues at the ICO stage are an investment agreement, therefore, in accordance with our federal securities laws, it is a share.”
“It is obvious that the SEC needs to show the same attention to cryptocurrency transactions as it does to transactions in US dollars, euros or Japanese yen, as well as to monitor their impact on securities markets.”
According to the erroneous opinion, the SEC is trying in every way to limit or even block the spread of Bitcoin and cryptocurrency. However, this is not the case. SEC has no special claims to cryptocurrencies, moreover, they believe in them, as well as Wall Street players. That’s what Clayton thinks about it.
“The technology that underlies cryptocurrency and ICO is revolutionary. The decisions that it carries, will increase the efficiency of financial transactions. And developments in the industry of fintech will help facilitate capital raising and provide promising investment opportunities for both large investors and ordinary people. ”
If the cryptocurrency market will be regulated, then it is not known at all what changes are worth the wait. Apparently, it will not be very correct position.