Difference between revisions of "U.S. Securities and Exchange Commission"

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In July 2017 the SEC issued an investigative report about the DAO, in which it clarified its views on the rapidly developing markets for [[initial coin offering]]s (ICOs), which were gaining widespread investor attention at the time.<ref>{{cite web|url=https://www.sec.gov/litigation/investreport/34-81207.pdf|name=Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act of 1934: The DAO|org=U.S. Securities and Exchange Commission|date=August 31, 2018}}</ref> The DAO was a German cryptocurrency-based venture capital fund which failed shortly after its launch in May 2016. According to the report, almost any cryptocurrency that results from an ICO would be viewed as a security in accordance with the "[[Howey Test]]." Subsequently, the SEC and its chairman, Jay Clayton, made a number of statements and issued warnings to the public regarding ICOs.  
 
In July 2017 the SEC issued an investigative report about the DAO, in which it clarified its views on the rapidly developing markets for [[initial coin offering]]s (ICOs), which were gaining widespread investor attention at the time.<ref>{{cite web|url=https://www.sec.gov/litigation/investreport/34-81207.pdf|name=Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act of 1934: The DAO|org=U.S. Securities and Exchange Commission|date=August 31, 2018}}</ref> The DAO was a German cryptocurrency-based venture capital fund which failed shortly after its launch in May 2016. According to the report, almost any cryptocurrency that results from an ICO would be viewed as a security in accordance with the "[[Howey Test]]." Subsequently, the SEC and its chairman, Jay Clayton, made a number of statements and issued warnings to the public regarding ICOs.  
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On March 7, 2018 the staff of the SEC's Divisions of Enforcement and Trading and Markets issued guidance to investors who might use unregistered platforms to trade crypto currencies and security tokens. The statement noted that many online platforms are called "exchanges" by their proprietors although they do not fulfill the requirements of a securities exchange or other SEC regulated platform.<ref>{{cite web|url=https://www.sec.gov/news/public-statement/enforcement-tm-statement-potentially-unlawful-online-platforms-trading|name=Statement on Potentially Unlawful Online Platforms for Trading Digital Assets|org=U.S. Securities and Exchange Commission|date=September 1, 2018}}</ref>
  
 
In July 2018, [[FINRA]] approved [[Coinbase]]'s acquisition of three companies - Keystone Capital Corp., Venovate Marketplace Inc., and Digital Wealth LLC - which enabled Coinbase to offer [[security tokens]] legally, under SEC authority.<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-07-16/coinbase-says-it-has-green-light-to-list-coins-deemed-securities|name=Coinbase Says It Has Green Light to List Coins Deemed Securities|org=Bloomberg|date=July 16, 2018}}</ref>  
 
In July 2018, [[FINRA]] approved [[Coinbase]]'s acquisition of three companies - Keystone Capital Corp., Venovate Marketplace Inc., and Digital Wealth LLC - which enabled Coinbase to offer [[security tokens]] legally, under SEC authority.<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-07-16/coinbase-says-it-has-green-light-to-list-coins-deemed-securities|name=Coinbase Says It Has Green Light to List Coins Deemed Securities|org=Bloomberg|date=July 16, 2018}}</ref>  

Revision as of 08:40, 1 September 2018


U.S. Securities and Exchange Commission
SEClogo.jpg
Founded 1934
Headquarters Washington, D.C.
Key People Jay Clayton, Chair; Valerie Szczepanik, Senior Advisor for Cryptocurrency
Products U.S. government securities regulation
Twitter @SEC_news
Facebook https://goo.gl/QADhon
Website www.sec.gov
Releases Company News

The U.S. Securities and Exchange Commission (SEC) is the U.S. regulatory agency charged with the oversight of securities markets and market participants in the U.S. Its mission is to protect investors, to maintain fair, orderly, and efficient markets, and to facilitate capital formation.

The SEC and Cryptocurrency

The SEC is also one of the main U.S. government institutions tasked with the regulation of cryptocurrency issuance and trading, along with the CFTC. In June 2018, the SEC appointed Valerie Szczepanik as associate director of the Division of Corporation Finance and senior adviser for digital assets and innovation.[1]

Starting in 2013, the SEC has alerted the investing public about some of the risks associated with cryptocurrency investments and investment schemes.[2][3]

In July 2017 the SEC issued an investigative report about the DAO, in which it clarified its views on the rapidly developing markets for initial coin offerings (ICOs), which were gaining widespread investor attention at the time.[4] The DAO was a German cryptocurrency-based venture capital fund which failed shortly after its launch in May 2016. According to the report, almost any cryptocurrency that results from an ICO would be viewed as a security in accordance with the "Howey Test." Subsequently, the SEC and its chairman, Jay Clayton, made a number of statements and issued warnings to the public regarding ICOs.

On March 7, 2018 the staff of the SEC's Divisions of Enforcement and Trading and Markets issued guidance to investors who might use unregistered platforms to trade crypto currencies and security tokens. The statement noted that many online platforms are called "exchanges" by their proprietors although they do not fulfill the requirements of a securities exchange or other SEC regulated platform.[5]

In July 2018, FINRA approved Coinbase's acquisition of three companies - Keystone Capital Corp., Venovate Marketplace Inc., and Digital Wealth LLC - which enabled Coinbase to offer security tokens legally, under SEC authority.[6]

To read the full article on the SEC, click on Marketswiki.gif to open a new tab with MarketsWiki.

References