The US Securities and Exchange Commission (SEC) issued a new public statement on 3 April describing a number of guidelines on cryptocurrencies and securities.
The purpose of the guidelines is to provide market players with clarity about whether certain digital currencies are subject to US federal securities legislation, the Securities Act of 1933 or not. The statement states:
As financial technologies, capital formation methods, and market structures evolve, market players need to be aware that they may be conducting activities that fall under our jurisdiction.
For example, market participants may perform activities that require registration of transactions and persons or entities involved in those transactions.
Even if no registration is required, activities related to digital assets that are securities may still be subject to commission regulation and supervision.
That said, the statement states that the directives do not contain official regulation or legislation, but rather provide a regulatory framework based on the views of the SEC.
The document with the new guidelines is the work of two SEC committee members: Bill Hinman, director corporate finance and Valerie Szczepanik, senior digital asset advisor, also known as the “Crypto Czar.”
The statement comes a day after the SEC sent a “No Action Letter” to TurnKey Jets, a recently established company that offers flights with private jets, in which the SEC states that the TKJ tokens from the company’s initial coin offering (ICO) are not securities.
Bill Hinman said last year that ethereum (ETH) and such cryptocurrencies are not securities under US law. Jay Clayton, president of the SEC, confirmed that last month.
Valerie Szczepanik recently announced he is going on tour in America to meet people from the cryptocurrency industry.