The Security and Exchange Commission’s (SEC) Director of Corporate Finance, William Hinman, announced at Yahoo Finance’s All Market Summit: Crypto today that bitcoin, ether, and other decentralized cryptocurrencies will not be classified as securities.
A New Asset Class
The U.S. Securities and Exchange Commission (SEC) has taken its sweet time in determining how to classify cryptocurrencies.
Finally, during a speech in San Francisco, California, SEC Director of Corporate Finance William Hinmann openly discussed the SEC’s views on initial coin offerings (ICOs) and digital assets — with the overall takeaway being that it’s not the name that matters, but rather the way a cryptocurrency is distributed, marketed, and used.
Hinmann first discussed how different coins were being looked at by the SEC — the most important factor being the circumstances surrounding the coin and the way it was distributed. He explained:
Calling the transaction an initial coin offering, or “ICO,” or a sale of a “token,” will not take it out of the purview of the U.S. securities laws.
The SEC’s stance may throw a wrench into many companies’ plans, particularly those …
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