SEC To Release Clear Guidelines On ICOs
The SEC is planning to release clear guidelines for the sector.
Developers To Get Clear ICO Requirements From The SEC
The US regulator is working on a plan that seeks to provide clear guidance on the classification of cryptocurrencies. The information has been announced by SEC head of Corporation Finance.
According to William Hinman, the regulator will release simplified guidance meant for developers. It will be used as a reference point when coming up with new token offerings. Through the guide, developers will determine if a token falls under the classification of a security or not. SEC official William Hinman, who was speaking during a Fintech event, however, failed to disclose the release date for the guidelines.
At the moment, the SEC is suggesting developers seek clarification on the development of tokens. The SEC has established its FinHub to deal with such queries from developers. The new wing will offer an immediate response to questions regarding security offerings.
The SEC is looking into accounting, token custody and valuation.
Hinman pointed out that a registration statement submitted before the SEC will touch on the issues raised. Hinman added that the latest guidance will also contain clarity on secondary market shift. This section will give developers a glimpse into how the SEC will treat tokens post initial offering.
He went ahead to give more details in the event the SEC categorizes tokens as securities. He said that the SEC will review factors like the expected returns of an investment.
About four months ago, the SEC released a report on DAO. DAO was a funding backed by Ethereum that featured its own token. Later the SEC revealed that it was a security. In the report, the SEC clarified that security regulations can be used in relation to some token sales.
Back in June, Hinman said that ether is not a security. Ether is the main crypto under the ethereum ecosystem.