The Chairman of the Commission on securities and exchange Commission (SEC) Jay Clayton on Tuesday spoke at the event Consensus: Invest where it said that sees no possibility for approval of the cryptocurrency exchange traded funds (ETFs) until the issue of market manipulation is resolved.
“I’m not ready to say exactly how the problem of manipulation will be solved, but it requires a decision, said Clayton. Who get retail customers is the price they should be able to rely on, free from manipulation. Not free from volatility, but free from manipulation.”
The Chairman of the SEC said that speaks on your behalf and not on behalf of Department headed by it, and also touched on the question of what is the classification of tokens as the securities during their distribution through the ICO.
“If you are financing your company using the sale of tokens, you should assume that this is a valuable paper,” he explained.
However, Clayton noted that in some scenarios, the determination of the status of the token may not be such a straightforward task. Speaking of crypto-currency startup Ripple and its XRP token, he said that “certain items require more information”, but did not go into details.
On the other hand, “in many cases the answer is obvious.”
“I sell you my token. I plan to open a business, and you hopefully will receive a profit from the purchase of this token,” added Clayton.
He also commented on the situation regarding the two ICO, which the regulator recently forced to register digital tokens as securities. Clayton said they are cooperating with the SEC, noting that the decision was made in the context of two specific companies.
“It should be understood that the solution of the problem in this case was so, but in other cases it might be different,” explained the Chairman.
Previously, Clayton has already given similar comments regarding the classification ICO-tokens. In April, he gave an example of a “token for the Laundry room” which is used to pay for relevant services and therefore can not be recognized as a valuable paper.
“If I have a token from the Laundry to wash things, it is not a security. But if I have a set of 10 tokens such as Laundry machines are being developed, despite the fact that tokens I can use in the future and I buy them because they expect to sell next year and benefit, is a valuable paper,” he said then. Discuss current news and events on the Forum
Source
