Trade group asks us sec not to classify ethereum as a
On cryptocurrencies, I want to emphasize two points. We at the SEC are committed to promoting capital formation. Considerations for Market Professionals I believe that initial coin offerings — whether they represent offerings of securities or not — can be effective ways for entrepreneurs and others to raise funding, including for innovative projects. Is there trading data?
Generally speaking, these laws provide that investors deserve to know what they are investing in and the relevant risks involved. Who is promoting or marketing the product, what are their backgrounds, and are they licensed to sell the product? They also present investors and other market participants with many questions, some new and some old but in a new formincluding, to list just a few:.
Is the offering legal? Who is issuing and sponsoring the product, what are their backgrounds, and have they provided a full and complete description of the product? It is especially troubling when the promoters of these offerings emphasize the secondary market trading potential of these tokens. Can I resell the coin or token, and if so, are there any limitations on my ability to resell?
Please also recognize that these markets span national borders and that significant trading may occur on systems and platforms outside the United States. The technology on which cryptocurrencies and ICOs are based may prove to be disruptive, transformative and efficiency enhancing. Is there trading data?
For example, do I have a right to give the token or coin back to the company or to receive a refund? Can I resell the coin or token, and if so, are there any limitations on my ability to resell? Please also recognize that these markets span national borders and that significant trading may occur on systems and platforms outside the United States.
They are intended to provide many of the same functions as long-established currencies such as the U. Securities and Exchange Commission. If a digital wallet is involved, what happens if I lose the key? Investors should understand that to date no initial coin offerings have been registered with the SEC.