US regulators are fighting the most hype in technology investment


nnnRuler comments: the US Securities and Futures Commission issued a sealed currency guide on the definition of some of the encrypted currency is securities, it will face strict supervision. The ‘virtual’ organization that provides and sells digital assets is required to comply with federal securities laws. However, the SFC has not yet provided a clear classification criteria, so some projects in the United States still need to take prudent approach.n
nnTranslation: Annie_Xun
nUS regulators will make the latest decision-making investment in the most hype in some areas subject to more stringent regulation.n
nOn Tuesday, the SEC, the Securities and Exchange Commission said that ICOs could be used as securities in some cases and that strict legal regulation was necessary.n
nICO is a new way of financing in digital currency such as ether coins and so on. Participants can get digital tokens by investing money. There are still unregulated status, and some ICO projects raise hundreds of millions of dollars, so that some observers think it is a huge bubble.n
nBut the SEC’s warning means that this open to everyone may not last forever.n
n”SEC today released a survey report that warns market participants that the ‘virtual’ organization that provides and sells digital assets needs to comply with the requirements of the Federal Securities Act, a product release based on distributed book technology or block chain technology, Sales are called ICO or ‘tokens’ sales. Regardless of the terminology or technology used, whether an investment transaction involves securities issuance or sales depends on the facts and circumstances, including the economic reality of the transaction. “n
nIn other words, no matter how you pack, if it looks like securities, smells like securities, the SEC will treat it as securities. Then sales must be registered in advance, although not all of the token sales are eligible. The problem lies in the details.n
nIn the e-mail note, Peter Van Valkenburgh, director of research at Coin Center, a nonprofit coin agency, said: “The SEC does not say that all tokens are securities, they recommend facts and circumstances, and only analyze the facts of last year’s DAO tokens situation”.n
nn”We believe that the factual and case determination of other tokens means that some of the tokens do not conform to the definition of the securities, especially the useful tokens, not only the token of speculative value.Our securities framework and other studies can explain We hope that the SEC will soon provide a clear guide. “n
nnPrior to the statement, ICO’s regulatory status was uncertain, and some start-up companies in the field took steps to seize the initiative. EOS tokens on sale (financing of more than $ 200 million) warned in a common question “Do not believe that EOS tokens or EOS tokens themselves are securities, commodities, swaps or other similar financial instruments, can not treat it as a Kind of investment “. The project also prohibits US citizens from purchasing EOS tokens.n
nSEC special investigation of the 2016 DAO all the chips, hackers attack the famous project. That token is “securities, so need to comply with the federal securities law”, do not register is illegal.n
nnSEC’s provisions for The DAO are very detailed, especially for DAO-like investment funds, does not apply to all ICO.n
n- Emin Gun Sirer (@ el33th4xor) July 25, 2017n
nnnIn any case, the ICO must be suspended. If your token is remodeling something that already exists, such as an investment fund, do not do it.n
n- Emin Gun Sirer (@ el33th4xor) July 25, 2017n
nnnFocus on only new technology can do things. Rather than by wrapping old ideas to avoid legal regulation.n
n- Emin Gun Sirer (@ el33th4xor) July 25, 2017n
nnnThe SEC has listed every possible ICO sponsor, and no one has received a free pass from that. https://t.co/IIcRP2e8Cvn
n- Barry Silbert (@barrysilbert) July 25, 2017n
nnThe supervisor will not sue the DAO project, but warns:n
nn”In view of these facts and circumstances, the SFC has decided not to prosecute or to point out a violation, but to warn the industry and market participants that the Federal Securities Act applies to companies that provide and sell securities in the United States, whether the issuer is a traditional company or a center Autonomous institutions, regardless of the use of dollars or virtual currency to buy securities, whether in the form of a certificate or through distributed books technology.n

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