Category Archives: US cryptocurrency news

Auto Added by WPeMatico

SEC to Issue Simplified Crypto Guidelines

The US Securities and Exchange Commission (SEC) has announced that it will soon clarify when and how cryptocurrencies may be categorized as securities, according to the Director of Corporation Finance of the regulating body.

William Hinman made these comments during the DC Fintech Week conference held in the US capital earlier. He committed to releasing new regulations in “plain English” to help guide developers who are planning to offer new tokens in the market. The latest guidance seeks to help young innovators determine if their potential coin project may be classified as a security or not. However, Hinman didn’t give an appropriate release date for the new guidelines.

The SEC has currently tightened control over ICOs in the country with little or no new projects granted regulatory approval. While it is trying to open up to the process with a new FinHub that provides instant feedback regarding regulations on securities and securities offering, the SEC still maintains an iron fist on the proceedings with one of the toughest approval processes in the world.

When Hinman was asked about how the SEC would differentiate between a security and utility token, he said that it would look on a variety of factors including expected rate of return touted on the investment. According to him, if an investor is promised return on his investment or something that will increase the price of a token offering, the SEC will probably look at it from a securities point of view.

This may not be the path developers want towards regulation but the regulator is promising to be more transparent in the process. Once the actual rules become clearer to the crypto community, they can be debated among users.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pexels.com

The post SEC to Issue Simplified Crypto Guidelines appeared first on BitcoinNews.com.

SEC Shuts Down More Than 12 ICOs in One Year

The US Securities and Exchange Commission (SEC) has continued its crackdown on Initial Coin Offerings (ICOs) and claimed to have shut down more than a dozen of them in the last fiscal year alone. The last fiscal year ended on September 30 of this year and it appears that the watchdog is not ready to dial things down when it comes to Initial Coin Offerings in the country.

According to an official report, three of the closed ICOs raised more than $68 million from investors before they were finally shut down by the authorities. Overall, the SEC got more than $3.945 billion in fines and penalties during the same time period. While the SEC is not just cracking down on ICOs, the tone and aggressive attitude towards the crypto startups was much more pronounced than other companies.

According to the report:

“Given the explosion of ICOs over the last year, we have tried to pursue cases that deliver broad messages and have a market impact beyond their own four corners,”

The report also noted that the new Division of Enforcement and its Cyber Unit formed at the end of last year has helped it with its pursuit of “cyber-related misconduct” which includes cryptocurrencies for sure.

The report also mentions ICOs and that many of them are under federal investigation and cases are still pending against them. SEC is also going against unauthorized digital asset brokers in the country, thus keeping a firm oversight over the entire cryptocurrency scene.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pexels.com

The post SEC Shuts Down More Than 12 ICOs in One Year appeared first on BitcoinNews.com.

Former Top US Commodities Regulator Says ICOs Should Be Treated Like Securities

A former chairman of the Commodity Futures Trading Commission (CFTC) has said that Initial Coin Offerings and their tokens should be treated as securities, according to a Bloomberg report. While the debate on whether or not cryptocurrencies should be treated as securities has been going on for a while in the US, the regulators are seemingly sticking to their point of view.

Gary Gensler, a former chairman of the CFTC made these comments while acknowledging the unique nature of cryptocurrencies. When asked whether blockchain technology should be regulated, he said that the commissions should be technology-neutral but investor protection within each community needs to be ensured, even in the case of cryptocurrencies.

Gensler said:

“I think that cryptocurrencies like Bitcoin (BTC) need more protection, and probably more protection than even the oil markets.”

While Gensler believes that overregulation is not the answer, he still insists that legislation like “traffic lights and speed limits” need to be ensured on crypto roads. His statement is quite similar to earlier statements from former and present regulators in the country.

SEC Senior Advisor for Digital Assets and Innovation Valerie A. Szczepanik said before:

“If you want [the crypto] industry to flourish, protection of investors should be at the forefront.”

But, SEC Chairman Jay Clayton has also gone on to say that a distinction between top cryptocurrencies like Bitcoin, Ethereum, Ripple, Dash, etc and normal ICOs need to be made. While ICOs need to be treated as securities, these popular cryptocurrencies may not be treated as such.

But, one thing is crystal-clear, that any ICO making forays in the cryptocurrency are likely to be treated as securities by the regulators for the time being.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pexels.com

The post Former Top US Commodities Regulator Says ICOs Should Be Treated Like Securities appeared first on BitcoinNews.com.