A group of US senators have forwarded a letter to the Head of the SEC requesting the latter to provide clarification on whether ICOs can be regarded securities, and if so, whether trading in ICOs can be deemed as a sale of securities.
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In their letter, the senators draw attention to the uncertainty reigning in the realm of digital tokens, and more specifically, their sales and offers (a practice known as ICO). They underscore the importance of removing any regulatory hurdles in that regard, noting that they render impossible development of new technologies in the US and cause businesses to relocate overseas.
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The lawmakers believe that the SEC should provide more clarification with regard to compliance with ICO regulations in the US. They warn against resorting to excessive regulatory policies and urge the SEC to eliminate any ambiguousness and uncertainty in token-related regulations. According to them, failure to do so in a timely manner may have negative repercussions for the emergence of cutting-edge technologies in the US and lead to stagnation in technological progress.
In view of the above, the senators request that the SEC provide clarification as to whether engaging in token-related operations in the US can be regarded as investment contracts, whether tolens realized as securities can end up being non-securities and whether the SEC has mechanisms in place that can provide investors with more specific guidance.
Although no deadlines for such clarification are provided in the letter, it does say that it will undoubtedly require time and due effort to come up with the aforementioned guidance. It is implied, therefore, that the response to the clarification request can only be expected in the long-term perspective.
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The letter follows a forum held in Washington recently and dedicated to regulatory problems faced by cryptoasset traders. The forum participants unanimously agreed that there is not enough clarity with regard to token-related operations and that the SEC has not yet come up with any satisfactory explanation as to what is legal and what is not in that respect. And while there is certainty in this realm, cryptocurrency businesses are continuing to relocate to other countries.
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