It’s over cryptocurrencyfags. The SEC just ruled that ICOs are securities, which means regulation is right around the bend. I warned you of the recent ICO scam plaguing inexperienced investors as being completely fraudulent last week.
With the SEC cracking down, expect to see 95% of these ICOs go to zero, scammers tossed into dank prison cells, paving the way for an orderly market that May in fact threaten the existence of Wall Street’s investment banking departments.
WASHINGTON (Reuters) – U.S. regulators on Tuesday declared that the offer and sale of digital assets, such as initial coin offerings, are securities – a determination that could pave the way for enforcement actions if firms fail to register the deals.
The finding by the Securities and Exchange Commission was released in an investigative report into a virtual organization known as The DAO. In the report, the SEC concluded that the tokens being sold were securities, and therefore, must be registered.
The SEC said it had decided not to bring civil charges at the end of its probe into The DAO, but instead use the case as a cautionary tale for the market.
The crypto market is worth $87b as of now, with most major currencies off 10% over the past 24hrs.
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Short doge coin???
Maybe I’ve been trade teh markets too long, but I’m going to go out on a limb here and say that this actually causes a short squeeze because this action ‘will further legitimize’ digital currencies. No news in bad news in strong trends, right.
Pepe art to da moon
Who gave the SEC jurisdiction over this? Digital coins are not securities.
Anything could be a security.
Not so sure. It may depend upon the circumstances of the offer. Seems there is no legal framework for CCs yet but in any case ICOs will simply be moved outside US jurisdiction.
Main outcome may be that it will limit competition to BTC.
I don’t think there’s any way to short these? The play might be go long the US$ (which has been getting hammered)….
There are crypto exchanges that support margin trading and shorting. Kraken.com is one example.
Not something I’d particularly recommend, but hey it’s your life…
I’m going to bookmark this post and link to it when bitcoin is $5,000. Short at your own peril. That’s crazy talk.
Looks like McAfee is gonna be having some tube steak for dinner
I doubt it. He thinks btc is going to $500k in three years for fuck sake. This is nothing – just a known blip in betting that the scammed playing field gets leveled a few times, is my guess.
Enforcement… how will they enforce their claim?
I have monopoly money I turned in. started an account
Wasn’t the dot com boom fun? All but the ending but it was certainly a blast while it lasted. Maybe we get a repeat.
I think this could be challenged and defeated legally and that is the reason DAO was not prosecuted. In any case ICOs will be welcomed at the City of London.
This does not apply to all ICOs, only ones where the tokens actually function the same way as securities ie represent a defined share of equity ownership which results in payouts etc. They only specifically talked about the Dao which failed last year. All network asset tokens or digital assets were not discussed
Thank you for that clarification.