Bitcoin is not a Security (engl. securities) to be considered – the investment division of the SEC in a current letter from the 1. October, the prevailing opinion affirms. Thus, it confirms the opinion, which made her Chairman Jay Clayton in 2018 in the framework of a hearing in the US Congress. As a pure Medium of Exchange was Bitcoin, especially in comparison to many tokens, no Security. Reason for the re-clarification, a written request of the Cipher Technologies Management LP, the requested SEC approval for the Cipher Technologies Bitcoin Fund. The aim was to be through the approval of an investment company under the “Investment Company Act”. This Cipher was of the opinion that Bitcoin was a Security.
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Bitcoin is not a Security SEC reaffirms the prevailing opinion is that
The statement by the SEC, comes in a two-page letter, which is deposited at the end of the article as a source. The staff of the SEC to argue in two directions, which is why Bitcoin is not a Security. On the one hand, BTC does not meet the requirements of the Howey test, which is used for the classification of Securities and on the other hand, this would be the beginning of the year document of the SEC, in which it is determined that the digital Asset is a Security and what not. As the SEC writes in the letter:
We do not agree with the conclusion that Bitcoin is a Security. We do not think that this conclusion is correct. Both because of the Howey test, as well as because of the framework we use for the classification of digital assets.
SEC bemoans the lack of quality of the Cipher application
The staff of the investment Department, complained here, in particular, that the Cipher “important legal and investor protection issues, particularly in respect of the valuation and safekeeping” are not sufficiently addressed and answered. From the aforementioned reasons, the SEC came to the conclusion that the Cipher way, therefore, unjustified to the application for registration as an investment company has provided. The SEC’s disclaimers, therefore, on a further examination; however, it is open to an audit if there are fundamental Changes in the way the investment structure.The best and safest stock market choose for you to opt for the right provider is not always easy. Therefore, we recommend that you take a look at our Bitcoin brokers & exchanges to throw a comparison. Trading on the safest and best exchanges in the world! For Comparison, if the Writing creates in any way a regulation or a General legal liability, it is nonetheless a meaningful, public confirmation of the SEC that Bitcoin is not a securities/Security. In addition, it is good to see that the SEC confirmed the prevailing opinion and stringently to acts of the guide, to be published at the start of the year. In this is regulated, how digital assets are to be classified – in other words, what Assets security’s and what not.Bitcoin is not a Security, the SEC confirmed the prevailing opinion. How would you rate the validity of the current letter of the SEC? Come in to our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News. (Image Source: Shutterstock)