Timeline Of SEC Cryptocurrency Announcements and Decisions

The Securities and Exchange Commission was established in 1929 as the first federal securities regulation authority, whose job it was "To protect investors, maintain fair, orderly and efficient markets and facilitate capital formation".

They mainly focus on the management of offers and sales of securities, on the regulation of trades on which they are traded, ensuring that companies do not divulge misleading information about their future performance or prospects and that investors are protected from fraud.

Source: wikipedia.org

Given that digital tokens have become increasingly popular and popular in recent years, SEC's actions appear to have influenced the prices of digital currencies. The SEC has become a recurring theme in the daily encrypted news cycle.

Whether determining the status of digital currencies, regulating new products or exchanges, the SEC decisions have exerted considerable influence on how cryptographic space works.

In today's article, we will cover some of the most important recent cryptocurrencies decisions and actions relating to the cryptocurrency market.

Ether and Bitcoin not titles

At a hearing in April in front of the House's appropriations committee, SEC president Jay Clayton clarified the committee's position on Bitcoin status.

"It's a complicated area. Because, as you said, there are different types of cryptoassets. Let me try and divide them into two areas. A pure medium of exchange, the one that is most often mentioned, is Bitcoin. In place of the currency, it was determined by most people not to be a security.

Then there are the tokens, which are used to finance projects. I've been on the record saying that there are very few, there's no one I've seen, tokens that are not titles. To the extent that something is a security, we should regulate it as security, and our securities laws are based on disclosure, and people should follow them and provide the information we need. "

From his statement, it is clear that Bitcoin is not yet considered a security.

In June, the second most widespread cryptocurrency in the world was officially declared not to be an investment vehicle by the Securities and Exchange Commission. The director of the corporate finance division, William Hinman, said that Ether-the token through which the Ethereum platform is used will not be regulated in the same way as stocks and bonds.

DAO token as illegal titles

In July 2017, the SEC announced that the DAO tokens, which were offered in an ICO that raised more than $ 150 million in 2016, will be considered as securities. This statement was followed by a February hearing in the Senate where SEC president Jay Clayton said: "I believe every ICO I've seen is a security. "

The initial offer of coins was in violation of the law because these tokens had not been registered with the SEC prior to the sale of tokens. This decision did not concern only the DAO; the implications of this decision have indicated that many Ico may also have legal problems in the future.

At the time of the decision, the SEC did not issue an objection, but actually changed the way the ICO scene takes place, which until then had been authorized to operate without any regulation for many months.

Although the cryptocurrency community has shown a negative reaction to the announcement, the overall impact on the market has been negligible. According to the sources, the first five coins have fallen prices on the day of the announcement, but after that they are back quite quickly.

Winklevoss ETF rejected

In July 2018, the SEC denied the second attempt by the Winklevoss brothers to launch a bitcoin ETF. On July 26, the SEC decided that the brothers affirm that the bitcoin markets are "inherently resistant to manipulation " it was not accurate, pushing them to reject their ETF proposals for this and other reasons.

This has made cryptocurrency markets rapidly responding, and in a negative way. BTC lost over $ 400 in value in just 3 hours. And, as usual, if Bitcoin falls, even other coins follow the trend. However, the cryptocurrency number one by capitalization has recovered its value within 24 hours.

On August 7, the US Securities and Exchange Commission (SEC) announced that it was postponing its decision on the approval or disapproval of a proposed change of rules that would allow the CBOE BZX Exchange to list a fund traded in Bitcoin (ETF).

In the same period, the agency rejected all nine Bitcoin ETF proposals presented by ProShares, Direxion and GraniteShares in three separate orders.

Now, the next deadline for approval of the ETF has been moved again, towards the end of December, although, in the end, everyone expects the sentence to occur in 2019.

Source: forbes.com

Negative VanEck SolidX ETF

As early as June 2018, VanEck and SolidX have applied for a Bitcoin ETF with physical protection to be listed on the BBO CXE Equities Exchange and awaiting a decision in August. Like the other ETFs, the SEC has also postponed its announcement on the ETF VanEck and SolidX proposals.

As mentioned earlier, the SEC decision profoundly affects the market, Ripple loses more than 20% of its value.

Interestingly, this news was neither positive nor negative. Unlike the case of ETF Winklevoss, this was not a waste of their product. Instead, he only announced that the decision would be delayed. However, this generated a strong reaction from the markets.

SEC and CFTC jointly recognize cryptocurrencies

While it seems that most of SEC's action leads to surrender to encrypted prices, there is an example that does not adhere to the trend. In February 2018, the SEC and the Commodities and Future Trading Commission (CFTC) held a joint hearing, which examined the issue of cryptocurrencies, ICOs and blockchain.

The representatives recognized that this new industry was of great importance, underlining that the right regulatory frameworks were needed to ensure its long-term success. The regulators also stressed that "If there was no bitcoin, there would be no blockchain".

The reaction of the market to this statement has materialized in a strong uptrend. The announcement had excellent timing, while China and India were mobilizing to crack down on cryptocurrency and the markets were heading for a downward trajectory. Both BTC and ETH recorded gains of almost 20% in the days following the hearing.

Conclusion

It is obvious that SEC plays an important administrative role in the cryptography industry, and the regulations and ads they advertise have an immediate impact, which goes beyond US borders and through global cryptographic markets.