US SEC to Clarify Cryptocurrency Related Regulations in Meetings with Startups
The US Securities and Exchange Commission will hold a series of meetings to discuss securities law and the potential of digital assets.
The US Securities and Exchange Commission is going on a tour to meet startups and cryptocurrency projects that may otherwise not be aware of the legal restrictions and requirements. The FinHub branch of the Commission is organizing the meetings, with the idea of avoiding the sale of unregistered securities.
“FinHub is designed to make the SEC’s FinTech work more accessible to innovators, entrepreneurs, and their advisers, and serves as a platform to inform the SEC's understanding of new financial technologies. FinHub is continuously interested in engagement,” the agency stated.
The advisory meetings will launch on March 26, starting from the San Francisco office of the SEC. Valerie Szczepanik, previously appointed to oversee the application of securities law to the digital asset sector, will discuss the nature of tokens and coins in the upcoming meetings.
The FinHub branch was created after months-long activity took USA to the leading position in token sales. But afterward, multiple projects were contacted with news that their digital asset was, in fact, considered an unregistered security.
The stance of the SEC has deeply affected the markets in the past, as decisions based on securities law are somewhat unpredictable. The recent fine against the decentralized exchange EtherDelta went on to show that tokens may at any moment be blocked for breaking securities law.
The coming meetings will show the attitude of the SEC to existing projects and startups. The launch of the meetings arrives just as SEC chairman Jay Clayton stated that Ethereum (ETH) is not a security in its current state. In the past, the Ethereum project has come under speculation of being a security, especially given that ETH was created after a process of public sales which may have temporarily turned the digital token into a security for legal purposes.
Currently, the discussion is still out on whether XRP can also be considered a security. Ripple, the issuer of the digital asset has been careful to dissociate the company from the coin, and so far exchanges in the USA have been cautious with XRP.