The Pierce said that the agency seeks to make clay regulation of cryptocurrencies, and has already held more than 100 meetings with the leaders of the crypto industry in order to discuss regulatory requirements with them. Now the most important subject of discussion was the question of whether cryptocurrencies are considered securities.
The commissar clarified: in order to be called securities, digital assets should imply any economic rights or business interests. In her opinion, cryptocurrencies are intended exclusively for personal use, so they should not be subject to federal laws on securities. Memecoirs should also not be considered securities, which the department announced in February.
The working group on cryptocurrencies also seeks to establish clear rules for cryptocurrency transactions to prevent Rug Pull fraudulent schemes, when project developers disappear with investors. The commission could think over the registration rules for offers of securities and crypto acts, as well as open a “safe harbor”, within the framework of which certain transactions could be carried out, the Pierce proposed.
This means that assets that can potentially be classified as investment contracts would function without registration as securities, provided that they meet certain regulatory criteria. The pier added that the SEC could establish an additional mode in which you can not register cryptocurrency eirrodes as securities.
In addition, the Pierce considers it important to clarify in which cases the investment contract and cryptoactive are not interconnected. Some courts believe that securities can even be called cryptocurrencies traded in the secondary market. Therefore, the Pierce suggested that the department not leave such definitions exclusively at the discretion of the courts.
Recently, Esther Pierce compared the ambiguity of cryptocurrency regulation in the United States with a children’s game in the dark “Paul is Lava!”. Many industry companies doubt which crypto acts are considered securities, so they simply move to other jurisdictions to avoid problems with regulators.
Source: Bits
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