From: PYMNTS
The Securities and Exchange Commission is getting into the bitcoin market, saying it will regulate the popular digital currency and other cryptocurrencies.
According to a report in Seeking Alpha, the SEC said the cryptocurrencies are subject to federal securities laws. “Offers and sales of digital assets by ‘virtual’ organizations are subject to the requirements of the federal securities laws,” said SEC Chairman Jay Clayton, according to the report. Seeking Alpha noted the regulations apply to companies that use distributed ledger or blockchain technology for things like an initial coin offering or token sales. Those that don’t register their offering could be liable for violation of 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 the proper disclosures and are subject to regulatory scrutiny for investors’ protection,” noted Seeking Alpha.
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