The Securities and Exchange Commission will not change the laws and regulations of the securities market in order to adapt to cryptocurrencies management. The head of the institution announced it in an interview with CNBC.
"We do not intend to undermine the traditional view of securities that have been operating for a long time ",
– the commission chairman Jay Clayton claimed, adding that the United States has set up a securities market with a total capitalization of $ 19 trillion on these terms.
The SEC does not plan to match its requirements by pleasing the companies whose funding is attracted by placement of the initial coin offering (ICO).
“If you have a coin or a share and you want to sell it through private placement, you must comply with the relevant rules,” Clayton announced. “If you wish to go through an IPO with your coin, please join us. The SEC will help the make public placement for issuers who are ready to undertake commitments complying with legislation”.
The commission also touched upon the regulation of cryptocurrencies.
“If I give you money for business development, but you promise me a profit in the future, then such an asset is already a security and is subject to regulation."
In order to determine whether an asset is a security, the Howey test, which was invented by the United States Supreme Court in 1946, is carried out. It classifies a security as a cash investment in a common measure from which the investor hopes to profit without effort. In March of this year, when Cleiton had already made it clear that ICO was in fact a sale of securities, he emphasised that today, if it is a security, its issue and circulation are regulated.
The companies which issue cryptocurrencies claim that their assets due to their practical use belong to another category. In these circumstances, the Financial Regulator is forced to balance between protecting consumer rights and stimulating innovations in a billion-dollar cryptocurrency market. For this purpose, the SEC has introduced a new position – Assistant to the Director of the Cryptocurrency Finance Division and Chief Advisor for Digital Assets and Innovations.