Regulators Are Looking at Cryptocurrency

Jay Clayton, Chairman of the SEC, and J. Christopher Giancarlo, Chairman of the CFTC, penned an op-ed in the Wall Street Journal that outlines the current regulatory perspective on crypto.

The SEC is devoting a significant portion of its resources to the ICO market. Through statements, reports and enforcement actions the SEC has made it clear that federal securities laws apply regardless of whether the offered security—a purposefully broad and flexible term—is labeled a “coin” or “utility token” rather than a stock, bond or investment contract. Market participants, including lawyers, trading venues and financial services firms, should be aware that we are disturbed by many examples of form being elevated over substance, with form-based arguments depriving investors of mandatory protections.


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