Cryptocurrencies ‘Are Replacements for Sovereign Currencies,’ Says SEC Chairman

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Cryptocurrencies ‘Are Replacements for Sovereign Currencies,’ Says SEC Chairman

The SEC has revealed that it views cryptocurrencies like Bitcoin as “replacements for sovereign currencies,” and has definitively deemed them as falling outdoors the umbrella of securities’ regulation. ICOs, then again, are securities — and there’s no room for argument.


‘These are replacements for sovereign currencies’

US Securities and Trade Fee chairman Jay Clayton spoke with CNBC’s Bob Pisani earlier this week about which cryptocurrencies are and usually are not securities. Although he didn’t reply questions on a cryptocurrency-by-cryptocurrency foundation, he did state definitively that Bitcoin shouldn’t be a safety. Fairly, he claimed it’s a substitute for fiat currencies.

Clayton defined:

Cryptocurrencies — these are replacements for sovereign currencies. [They] substitute the greenback, the yen, the euro, with bitcoin. That kind of foreign money shouldn’t be a safety.

Apparently, Clayton didn’t sound notably bearish on the thought of cryptocurrencies changing fiat currencies. As an alternative, he appeared relatively neutral to the thought.

 

‘If it’s a safety, we’re regulating it’

The SEC chairman was, nonetheless, crystal clear with reference to his company’s stance on preliminary coin choices (ICOs) — they’re securities. Finish of story.

Clayton said:

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