SEC Attorney Claims SEC Has No Specific Cryptocurrency Security Determinations Yet
In a response to a query by an XRP enthusiast Lisa Skrycki, an attorney of the Office of Investor Education and Advocacy U.S SEC, stated that the SEC has not concluded any of the cryptocurrency in the market as a security.
“As an initial matter, please be advised that notwithstanding any enforcement actions taken by the SEC, the SEC has not made a determination as to whether any specific cryptocurrency may be deemed a ‘security’ under the federal securities laws.”
Earlier SEC’s director of corporate financing, William Hinman, had stated:
“The analysis of whether something is a security is not static and does not strictly in here to the instrument. Even digital assets with utility that function solely as a means of exchange in a decentralized network could be packed and sold as an investment strategy that can be a security.”
On Ether he had added:
“Based on [his] understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions. And, as with Bitcoin, applying the disclose regime of the federal securities laws to current transactions in Ether would seem to add little value.”
The statement made by the Director led to a huge buzz in the cryptocurrency space. This also had an impact on the value of the cryptocurrencies followed by a lot of controversies.
Now, regarding the controversy created round Hinman about his Ethereum statement, Skrycki said:
“As you may be aware, Director Hinman’s remarks include a disclaimer: The SEC disclaims responsibility for any private publication or statement of any SEC employee or commissioner. This speech expresses the author’s views and does not necessarily reflect those of the commission, the commissioners or other members of the staff.”