Jay Clayton, the SEC chairman was present at CoinDesk’s Consensus in Manhattan to discuss about cyrptocurrency and the impending regulations in the Industry. Here are the major takeaways from the conversation that caught my attention:
Every ICO Token Is a Security
This piece is really crucial in terms of implications for ICO's that have raised money without any decentralized structure in the token economy. The Chairman clearly stated that companies that have issued currency to fund their venture will be declared Security tokens. All the ICO's that raised money will be declared as Security and will be dealt with accordingly. This means there will be retrospective actions in such cases.
I see this as a major drawback for exchanges as they would now need approval from the SEC to trade tokens. Decentralized exchanges are in for some massive hammering as well.
Bitcoin ETF's are still far away
ETF's would have been a good way to bring in institutional interest into the cryptocurrencies but Clayton has different plans. She clearly mentions that the SEC needs to be sure that price is free from manipulation for the ETF to be approved. She also adds that ETF's are not going to be approved anytime soon.
While some may see this as investor protection by the SEC but does this not kill the "Free from government control" nature of Cryptocurrency? I have mixed feelings in regards to the regulations that are coming in. While they would definitely reduce scam and shitty ICO's but the decentralized nature is compromised in this entire process. What are your thoughts?
Source 1: thecryptonews
Source 2: coindesk
Every ICO Token Is a Security
This piece is really crucial in terms of implications for ICO's that have raised money without any decentralized structure in the token economy. The Chairman clearly stated that companies that have issued currency to fund their venture will be declared Security tokens. All the ICO's that raised money will be declared as Security and will be dealt with accordingly. This means there will be retrospective actions in such cases.
I see this as a major drawback for exchanges as they would now need approval from the SEC to trade tokens. Decentralized exchanges are in for some massive hammering as well.
Bitcoin ETF's are still far away
ETF's would have been a good way to bring in institutional interest into the cryptocurrencies but Clayton has different plans. She clearly mentions that the SEC needs to be sure that price is free from manipulation for the ETF to be approved. She also adds that ETF's are not going to be approved anytime soon.
While some may see this as investor protection by the SEC but does this not kill the "Free from government control" nature of Cryptocurrency? I have mixed feelings in regards to the regulations that are coming in. While they would definitely reduce scam and shitty ICO's but the decentralized nature is compromised in this entire process. What are your thoughts?
Source 1: thecryptonews
Source 2: coindesk
its actually highly problematic if the SEC flirts with the indexmafia or any of their affiliates, because they would basically support the cause of private individuals to basically run their attentionhack for which there was no global consensus, they did their attentionhack and now they want to impoverish all enrich themselves and define the misfortunate as so called "shitcoiners"
