The us securities and exchange Commission (SEC) plans to clarify when and how cryptocurrencies can be recognized as securities, CoinDesk writes with reference to the statement of the Agency’s representative.
Speaking at FINTECH week in Washington, the SEC Director of corporate Finance William Hinman said that the regulator intends to set out in “accessible English” the rules to which the organizers of token sales will be able to apply. The guide will help developers determine whether their tokens can be recognized as securities, Hinman said, without specifying when the SEC will publish the promised documentation.
If developers cannot clearly determine whether they are issuing a security or not, they should contact the regulator’s new financial hub, which deals with such issues
Also, the SEC is ready to provide crypto-startups with advice on accounting, storage and evaluation of tokens. Some statements received by the regulator to date have already touched upon similar problems.
“I think we should try to put it all together and share it. We want to share something a little more transparent,” he said. The guide will also cover secondary market transactions so developers know how to deal with their tokens after completing the bulk of the campaign.
Speaking about what factors the SEC will take into account when recognizing the token as a security, as an example, Hinman pointed to the expected return on investment in the proposed instruments. “If someone offers a monetary instrument to a third party, and that person expects some return or something that will increase the value of the coin or token, this indicates that we are dealing with the offer of a security,” he explained.
At the end of September, the SEC was approached by a group of American legislators with a request to clarify the situation with the status of securities and tokens on the cryptocurrency market.