SEC reaffirms that Bitcoin is not a security

UNITED STATES, WASHINGTON (OBSERVATORY) — The US Securities and Exchange Commission (SEC) still believes that the first cryptocurrency is not a security.

According to The Block , Cipher Technologies Bitcoin Fund has applied for registration of a closed interval fund and an investment company. The submitted documents indicate that Bitcoin is a security. SEC staff did not agree with this information, citing the Howie test and the Digital Asset Analysis Guide released earlier this year.

“Among other things, we are not sure that Bitcoin buyers rely on third-party management skills and entrepreneurial efforts to make a profit. Thus, since Cipher intends to invest, in fact, all its assets in cryptocurrency, it does not meet the definition of an investment company in accordance with the Investment Companies Act of 1940. The company mistakenly filed an application in form N-2,” the agency said.

The SEC emphasized that if the first cryptocurrency was a security, then “there would be other significant problems”.

For example, in this case, Bitcoin would universally qualify as a “publicly offered security”, and similar Cipher funds would play the role of underwriters.

Among other things, the Commission notes that Cipher did not take into account issues related to the protection of investor rights, especially regarding pricing, storage and opposition to market manipulations.

Earlier, the fact that Bitcoin does not belong to the category of securities was announced by SEC head Jay Clayton.

We also recall that recently, SEC Special Commissioner Hester Pearce expressed the opinion that cryptocurrencies in the future could become “Internet money.”

Online:

This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.

Our Standards, Terms of Use: Standard Terms And Conditions.

OBSERVATORY NEWS — Breaking news source, real-time coverage of the world’s events, life, politics, business, finance, economy, markets, war and conflict zones.

Contact us: contact@newsobservatory.com

Stay connected with News Observatory and Observatory Newsroom, also with our online services and never lost the breaking news stories happening around the world.

Support The OBSERVATORY from as little as $1 – it only takes a minute. Thank you.

We are NEWS OBSERVATORY — the only funding and support we get from people – we are categorically not funded by any political party, any government somewhere or from any grouping that supports certain interests – the only support that makes OBSERVATORY possible came from you.

Related Articles