In a public statement, today SEC clarified that “If a platform offers to the trade of digital assets that are securities and operates as an “exchange,” as defined by the federal securities laws, then the platform must register according to the SEC rules as a national securities exchange or be exempt from registration”.
Most exchanges are running without the consent of SEC
In its public statement, SEC rules have clearly mentioned its standpoint on the current status of cryptocurrency exchanges running in the country. The statement reads:
“Many platforms refer to themselves as “exchanges,” which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange. Although some of these platforms claim to use strict standards to pick only high-quality digital assets to trade, the SEC does not review these standards or the digital assets that the platforms select, and the so-called standards should not be equated to the listing standards of national securities exchanges”
The above statement comes at a time just when people were thinking that SEC might play a light on cryptocurrency. But the public statement clearly indicates that SEC would not allow cryptocurrency exchanges to run without its permission.
ICO’s and other digital asset buy/sell platforms also considered in the statement
SEC also indicated that ICO’s and other digital asset buy/sell online platforms not registered with SEC are also subject of this statement. The rumors of SEC’s involvement in the acquisition of Poloniex exchange by Circle have again resurfaced and this statement strengthens the zeal of SEC to control cryptocurrency exchanges. The cryptocurrency market is expected to react to this news and there might be a drop in cryptocurrency prices.
What are your views on SEC rules for unlawful trading exchanges? Let us your thoughts in comments below.
I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.