SEC Clarifies That Not All Tokens Could Be Considered As Securities

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SEC states that tokens distributed within a functioning network are not securities. Tokens sold for use in a functioning network, rather than as investment contracts, fall outside the definition of securities,” 15.11.2018  |   in Forecasts SEC vs DEX: Two Lessons To Learn From EtherDelta Case — noted the Commissioner. There was a transcript of the speech published on SEC’s official website, regarding the rules for tokens and their classification. “When the tokens are not being sold as investment contracts, however, they are not securities at all. This opinion was expressed by SEC Commissioner Hester PEIRCE, known for defending the possible existence of Bitcoin ETF last year. A statement like the one which is being made could mean the regulator is ready to re-consider tokens and loosen its grip soon.

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SEC states that tokens distributed within a functioning network are not securities. This opinion was expressed by SEC Commissioner Hester PEIRCE, known for defending the possible existence of Bitcoin ETF last year. There was a transcript of the speech published on SEC’s official website, regarding the rules for tokens and their classification.

“When the tokens are not being sold as investment contracts, however, they are not securities at all. Tokens sold for use in a functioning network, rather than as investment contracts, fall outside the definition of securities,”
15.11.2018  |   in Forecasts SEC vs DEX: Two Lessons To Learn From EtherDelta Case — noted the Commissioner. She also refers to the Howey test as a tool for assessing and classifying...

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