04.04.19
SEC Releases Digital Assets Framework
by: Melanie Waddell
The SEC's Strategic Hub for Innovation and Financial Technology has published a framework to help analyze whether a digital asset is offered and sold as an investment contract, and, therefore, is a security. Bill Hinman, director of the Division of Corporation Finance, and Valerie Szczepanik, senior advisor for Digital Assets and Innovation, said that depending on the nature of the digital asset, “including what rights it purports to convey and how it is offered and sold, it may fall within the definition of a security under the U.S. federal securities laws.” Hinman and Szczepanik said that as “financial technologies, methods of capital formation, and market structures continue to evolve, market participants should be aware that they may be conducting activities that fall within our jurisdiction.”
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