US Legal Group Summons SEC Chairman Clayton for ICO Regulation Clarity
15 US Lawmakers Ask SEC Chairman Jay Clayton for ICO Regulation Clarification
The cryptocurrency market is everything but defined in the United States as the regulation is slowly being drafted and only after some time, it will be possible to establish a framework for the market. Now, a group of U. S. lawmakers has contacted the chairman of the Securities and Exchange Commission (SEC), Jay Clayton, to clarify when Initial Coin Offerings (ICOs) will be securities.
Leading the charge was North Carolina Representative Ted Budd that stated:
Today I sent a bipartisan letter to the Chairman of the U.S. Securities and Exchange Commission, Jay Clayton. This multi-member letter asks for the SEC to clarify the criteria they use determine when offers and sales of digital tokens should be classified “investment contracts” and therefore securities, and to also clarify what makes an offer a non-security, and most likely a commodity.
In the letter, that you can read here, Ted Budd, Warren Davidson, Tom Emmer and Darren Soto, along with 11 others, request that Clayton should clarify better how the U. S. SEC will address ICO token sales.
Sending this letter now is one Congress can do to make sure we stop this new technology from being driven offshore. The bottom line is that we must make sure the United States of America is the world’s leader in financial technology
The lawmakers understand that there is a level of uncertainty surrounding the treatment of the sale of digital tokens and that this is hindering innovation in the country and driving business elsewhere. The letter states that the SEC could clarify its position better and that the government is concerned by how these actions will be enforced and about their legal approach.
The letter says:
“We believe the SEC could do more to clarify its position. Additionally, we are concerned about the use of enforcement actions alone to clarify policy and believe that formal guidance may be an appropriate approach to clearing up legal uncertainties which are causing the environment for the development of innovative technologies in the United States to be unnecessarily fraught.”
They are also asking the SEC to clarify when tokens should be considered investment contracts and when securities can later be considered non-securities, as well as how the SEC intends to guide the investors.
While the letter does not provide a timeline and it understands that it takes some time and consideration to provide a formal guidance, it urges the SEC to deal with these issues.
This letter was sent after Davidson hosted a forum in Washington D. C. asking crypto leaders to express their issues with the regulations in the market.
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