The Securities and Exchange Commission is entering the bitcoin market, saying it will regulate the popular digital currency and other cryptocurrences.
According to a report in Seeking Alpha, the SEC said the crypts are subject to federal securities laws. "Offerings and sales of digital assets by" virtual "organizations are subject to the requirements of federal securities laws," said SEC President Jay Clayton, according to the report. Seeking Alpha noted that the regulations apply to companies that use distributed book or blockchain technology for things like an initial coin offer or chip sales. Those who do not register their offer could be held liable for violating securities laws, the SEC said. The reason for the regulation, according to the SEC, is "to ensure that investors are sold investments that include all appropriate disclosures and are subject to regulatory scrutiny for investor protection," Seeking Alpha said.
The move by the SEC comes at a time when bitcoin is growing and regular investors are taking note. Last weekend's bitcoin investors were in for a wild ride, with cryptography trading below $3,700 and then an hour later trading around $4,115. This recent rise in the price of bitcoin comes at a record high of $3,000 set a week ago. Although there is not a single reason why bitcoin increased so much over the weekend, TechCrunch news pointed to a handful of reasons. For starters, confidence in the virtual currency is increasing after bitcoin passed through a so-called hard bifurcation without suffering and then a few days later installed a code modification called SegWit that corrects malleability problems as well as allows more transactions Are stored in each block chain. Because of those moves that boost confidence, TechCrunch speculated that it boosted the bitcoin price until the weekend. Another reason for the cryptocurrency surge, according to TechCrunch, is the initial currency supply craze (ICO) that is taking hold. According to the report, so far the amount of money startups have raised through initial coin offerings is more than a company can raise in an early venture capital company.
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By PYMNTS
nice information...
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