- Many people are interested in cryptocurrencies, but are concerned about government intervention.
- The SECs Chairman Jay Clayton made a statement about cryptos last month that was largely overlooked.
- Clayton is doubling down on the “21(A) Report” at a time when his regulatory counterpart is embracing Bitcoin.
- It appears a showdown is brewing: who controls the regulation of the fastest growing asset in the world.
SEC Chairman Jay Clayton
that these markets span national borders and that significant trading may occur on systems and platforms outside the United States. Your invested funds may quickly travel overseas without your knowledge. As a result, risks can be amplified, including the risk that market regulators, such as the SEC, may not be able to effectively pursue bad actors or recover funds.
initial coin offerings — whether they represent offerings of securities or not — can be effective ways for entrepreneurs and others to raise funding, including for innovative projects.
replacing a traditional corporate interest recorded in a central ledger with an enterprise interest recorded through a blockchain entry on a distributed ledger may change the form of the transaction, but it does not change the substance.
The 21(A) Report
the Commission applied longstanding securities law principles to demonstrate that a particular token constituted an investment contract and therefore was a security under our federal securities laws.
brokers, dealers and other market participants that allow for payments in cryptocurrencies, allow customers to purchase cryptocurrencies on margin, or otherwise use cryptocurrencies to facilitate securities transactions should exercise particular caution, including ensuring that their cryptocurrency activities are not undermining their anti-money laundering and know-your-customer obligations.