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SEC issues a statement on issuance and trading of digital asset securities

Priya

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SEC issues a statement on issuance and trading of digital asset securities
Source: Unsplash

The United States Securities and Exchange Commission [SEC] is back in the limelight with yet another bold statement. The regulatory body recently published an article that outlines that the rules and regulations have to be followed by everyone whether they are involved in the cryptocurrency space or not.

The announcement claimed that the Division of Corporation Finance, Investment Management, and Trading and Markets under the commission encourages the technological advancement and its benefits to the investment markets. Nonetheless, everyone has to “adhere” to their “well-established and well-functioning federal securities law framework”. They added that this implies irrespective of whether the securities are issued in certificated form or with blockchain technology.

They further outlined the issues that were found in their recent crackdown, i.e., AirFox, Paragon, Crypto Asset Management, EtherDelta’s Founder, and TokenLot, in three pointer. The first being sales and offering of security tokens including the issuance of securities during Initial Coin Offering. The second is the investment firms investing in securities and the ones advising others to invest in securities and the third is secondary market trading of the digital securities. The commission also elaborated on the three issues that were outlined.

Based on the report, AirFox and Pargon were scrutinized for offering tokens which are classified as securities without registering with the commission. Whereas Crypto Asset Management was held accountable for not registering with the commission as it was formed to be a hedge fund for investing in cryptocurrencies. Additionally, the manager of the firm was playing the role of an investment adviser and was held accountable for misleading the investors.

EtherDelta, a decentralized exchange for the Ethereum based tokens, was also in the spotlight because of the SEC. However, it was not the exchange that caught the attention of the commission, it was the Founder. This was because the Founder had failed to register the exchange with the SEC despite having all the characteristics of one. And TokenLot was held responsible for not registering itself as a broker dealer.

Veneratio1980, a Redditor said:

“One more reason to be long for the long term. SEC slowly but surely providing guidance. The more clarity the SEC provides, the closer Institutions are to investing”

OsrsNeedsF2P, another Redditor said:

“Just read it. A key takeaway is if you develop for a decentralized exchange, you must register as an operator of an exchange. Time to finally start seeing true DEX’s like Bisq shine. No website, all P2P, anonymous developers. Let’s go”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin’s censorship resistance, freedom make it a game changer in the economic industry

Biraajmaan Tamuly

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Bitcoin's censorship resistance, freedom makes it a game changer in the economic industry
Source: Pixabay

Over the years, the global economic industry has witnessed significant changes. However, no change has been more significant or essential than the one introduced by the concept of virtual assets or Bitcoin. Today, Bitcoin and other virtual currencies are almost as essential as fiat money and despite the fact that digital assets have not reached worldwide adoption, the pace of growth has been substantial.

In a recent panel discussion, Jedidiah Taylor, CEO and Founder of Decent.Bet, the smart contract-based sports betting platform, stated that the idea of Bitcoin and blockchain technology projected a perspective of freedom and honesty which allowed individuals to have direct control over their own capital, without any oversight supervision from financial institutions.

The sentiment was followed by Nico De Jonghe, Founder and CEO of NDJ Investment Group, who added that the threat of decentralized assets loomed the largest over centralized institutions like banks, who were worried of the future prospects offered by Bitcoin and its impact on the long-term financial situation.

Tone Vays, a reputable analyst and Bitcoin proponent, opined and stated that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention. The characteristic of censorship-resistant value transfer is also an absolute game-changer for Bitcoin, allowing it to competitively exist in the financial system.

The value of Bitcoin has often been criticized in the past, but its valuation has consistently proven its worth. In fact, Bitcoin has grown by more than 150 percent in 2019.

At press time, Bitcoin was priced at $11,371, with a market capitalization of over $202.18 billion. The staggering valuation of an asset that was unheard of 10 years ago, further underlines the potential of Bitcoin in the current market scenario and for the future economies.





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