The SEC has requested additional analysis of XLM, ZEC and ZEN funds from Grayscale Investments. The company admitted that these coins can be considered as securities.
The US Securities and Exchange Commission (SEC) has requested an analysis of the compliance of XLM, ZEC and ZEN with securities laws. As it turns out, Grayscale isn’t entirely sure about the status of these coins. The document notes that “the SEC has not provided any guidance on determining the status of cryptocurrencies as securities.” Therefore, Grayscale acknowledged that these assets may or may not become securities in the future.
Now the decision on the fate of trusts depends on the SEC. ZEC, ZEN and XLM coins represent only a small part of the total assets managed by Grayscale. The company manages $18.7 billion in assets, and only $40 million in funds for the aforementioned cryptocurrencies. However, analysts believe that such uncertainty from Grayscale could threaten trusts in other altcoins.
Cryptocurrency lawyer Gabriel Shapiro is very surprised that Grayscale admitted the possibility of recognizing ZEC as a security:
“Zcash (ZEC) has a very conservative distribution policy – no pre-mining. If the SEC thinks that Zcash is a security, then in fact any crypto asset can be recognized as a security. Perhaps only BTC can be excluded from this definition, but this is debatable.”
Recently, former SEC Chairman Jay Clayton raised concerns that over-regulation of the cryptocurrency industry could destroy it.
Source: Bits
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