SEC Chief Confirms It- Cryptocurrency is not a Security- Great News for the Cryptocurrency Community
The SEC Chief, Jay Clayton, has confirmed that digital assets are not securities and do not fall under securities law. This is an enormous step forward. According to analysis by Jay, cryptocurrency and digital assets are securities when first issued at ICO, but become decentralized after issuance through mining and/or replication algorithms.
There are still questions about the status of digital assets as securities, when they are securities and other technical definitions, but it looks like their status allow for more institutional investment.
If the ruling that digital assets are not SEC governed securities stands, large institutions may begin investing in them. This could catalyze the Cryptocurrency Market, and allow contentious cryptocurrencies like XRP and Tron to become exchange traded products. Expect to see Coinbase be acquired for ease of adoption and their client base.
Would you invest in a Bitcoin ETF? Do you think this ruling will get institutions involved?
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