FX.co ★ Five key facts about cryptocurrencies from the point of view of the SEC

According to Jay Clayton, the head of the US Securities and Exchange Commission (SEC), current owners of cryptocurrencies should be very careful and carefully monitor the digital market dinamics. It invites attention to a number of features of virtual currencies which are very important for the SEC.

No one ICO has been registered in the SEC

At the present time, no one initial coin offering (ICO) from those, which already exist or their launches are planned, is registered in the Securities and Exchange Commission. Also, the agency has approved neither listing nor trading of any exchange products related to the cryptosphere yet.

The SEC representatives cannot always protect investors

As the market of digital currencies is unregulated, members of the US Securities and Exchange Commission cannot always influence it. In case of fraud by the participants of the cryptocurrency market, sometimes the SEC turns out to be powerless, and investors can lose all means.

Many tokens participating in ICO are securities

There is a misconception in the cryptosphere that tokens participating in ICO are not securuties and are not subject to the corresponding federal law. However, a number of coins participanting in initial offering are shares, and they are subject to the laws which are governed by the Securities and Exchange Commission.

The SEC considers cryptocurrencies as financial resources

As J. Clayton points out, in the agency, digital means of payment are considered as ordinary currencies of the world financial market. He notes that the SEC monitors transactions in virtual currencies in the same way as transactions in US dollars, euros, and yen.

The SEC believes in the future of cryptocurrencies

According to the representatives of the US Securities and Exchange Commission, digital currencies have a promising future. The SEC believes that the technology of blockchain, on which cryptocurrencies and ICO are based, can be a breakthrough, a revolutionary step in the financial sphere that increases the efficiency of financial operations several times.