{"id":7403,"date":"2018-06-07T01:49:03","date_gmt":"2018-06-07T01:49:03","guid":{"rendered":"https:\/\/www.legitgambling.com\/news\/?p=7403"},"modified":"2018-06-07T01:58:33","modified_gmt":"2018-06-07T01:58:33","slug":"us-sec-says-cryptocurrencies-will-not-be-deemed-as-securities","status":"publish","type":"post","link":"https:\/\/www.legitgambling.com\/news\/us-sec-says-cryptocurrencies-will-not-be-deemed-as-securities\/","title":{"rendered":"US SEC Says Cryptocurrencies Will Not Be Deemed As Securities"},"content":{"rendered":"

\"\"The US SEC, headed by Jay Clayton, has reiterated that it will not consider cryptocurrencies as securities,<\/a> despite the fact that it is looking at innovative methods to monitor the nascent multi-billion dollar blockchain technology industry. The SEC quoted a 1946 decree passed by the Supreme Court to strengthen its argument.<\/p>\n

The Supreme Court had stated that securities symbolizes an investment of money in a public enterprise, in anticipation of returns primarily from the efforts of those running the company. Whether this definition is applicable to cryptocurrencies is a subject of controversy, with experts pointing to the ability of virtual currencies to serve as a means of exchange. The skeptics argue that the decree, referred to as the \u2018Howey Test\u2019, was passed several years before and without digital currencies in sight.<\/p>\n

Jay Clayton, speaking to CNBC, stated<\/p>\n

\u201cWe are not going to do any violence to the traditional definition of security that has worked for a long time. We\u2019ve been doing this (managing securities) for a long time. There\u2019s no need to change the definition.\u201d<\/p><\/blockquote>\n

Jay Clayton has also stated that a company planning to raise funds through ICO should follow the private placement rules. Clayton invited companies to visit his office, if they want to go public through an IPO.<\/p>\n

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