- SEC announces that Bitcoin will be regulated like a payment method.
- SEC chairman Jay Clayton announced that Bitcoin should be treated as a payment mechanism or store of value on CNBC.
- The move should ensure that Bitcoin receives more regulation as it grows in popularity.
SEC announces Bitcoin will be regulated like a payment method
SEC announces that Bitcoin will be regulated like a payment method. The organizations’ chairman Jay Clayton announced that Bitcoin should be treated as a payment mechanism or store of value on CNBC.
The move should ensure that Bitcoin receives more regulation as it grows in popularity. The regulation will not be coming from the Government department, though, as they do not regulate payment mechanisms.
Regulation for Bitcoin as it grows in popularity will come from other Government agencies like the Financial Crimes Enforcement Network and the IRS. On CNBC, Mr. Clayton explained that he does not see Bitcoin as a security, but other federal agencies will look to regulate it too.
The chairman explained on TV that Bitcoin acts more like a way to store value and make purchases than any other thing. Failures in the current tools available for buying things are boosting the currency’s popularity.
Bitcoins emerging celebrity status could result in it experiencing further monitoring from the Government. Mr. Clayton said that the policies would evolve as Bitcoin grew.
The department had not regulated Bitcoin before because they could not do so as if it was a security. The organization regulates when individuals work with cryptocurrencies to raise capital for a venture.
The ICO problem that occurred resulted from the fact people were bypassing the department all together by not registering them. ICOs, without permission from the US organization, were making public offerings for securities.
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