QUICK TAKE: SEC’s Crypto Approach Gets Vote of Confidence
The Securities and Exchange Commission’s (SEC) “steadfast yet proactive approach” on Bitcoin and other cryptocurrencies shows the sector is increasingly mainstream, affirms one Chief Executive Officer.
The comments from Nigel Green, founder and chief executive of deVere Group, come after Jay Clayton, the chair of the SEC, the U.S. financial regulator, told CNBC recently that Bitcoin is not a security.
“We are not going to do any violence to the traditional definition of ‘security’ that has worked for a long time,” said Chairman Clayton. He also made clear that the SEC is not changing its rules for initial coin offerings (ICO), underscoring that tokens or digital assets used in that fundraising process are securities.
Nigel Green, whose firm operates deVere Crypto, the cryptocurrencies trading exchange app, toldd Traders Magazine that “The SEC’s steadfast yet proactive approach on Bitcoin and other cryptocurrencies shows the sector is increasingly mainstream. The SEC is right to insist that the digital coins, such as Bitcoin, which are replacement for sovereign currencies, such as the dollar, sterling, yen and euro, are not securities.”
Furthermore, Green said he believes the SEC is also right that the tokens – which he did not name – that act as digital assets are securities.
“This clarification by the SEC removes some of the uncertainty that has been swirling around the crypto sector and serves to strengthen the overall proposition of many of the major cryptocurrencies.”
Green finished by saying the SEC’s clarity will have a positive impact on the cryptocurrency sector.
“The agency’s stance will rightly target what needs to be targeted and allow the legitimate digital coins to prosper.”