“Until the problems associated with the manipulation of the cryptocurrency market are resolved, I do not see an opportunity to approve cryptocurrency exchange funds (ETFs),” said Consensus, chairman of the US Securities and Exchange Commission (SEC): Invest on Tuesday.
“At the moment I don’t have a solution to this problem, but this needs to be done before the ETF is approved”, Clayton said.
Speaking on this issue, Clayton also noted that he speaks personally on his own behalf, and not on behalf of the department he heads.
He also clarified whether the sale of tokens with the help of ICO is a distribution of securities.
“If your activity is financed through the primary placement of tokens, then the tokens that are used for this purpose are valuable”, the SEC chairman explained.
However, he noted that the determination of the status of the token is not unique in all cases. Speaking of Ripple, a cryptocurrency startup and its XRP token, he said that “in some cases more information is needed,” but he didn’t go into details.
But still, in his opinion, most often the answer is obvious.
“I sell you my token and I plan to open a business with borrowed funds, while you buy it and expect to make a profit”, he explained.
The chairman of the regulatory agency also commented on the situation regarding the two ICOs, which the regulator ordered to register digital tokens as securities.
“They collaborate with the SEC. It should also be understood that the decision was considered and was made in the context of two specific companies. In other circumstances it may be different”, said the SEC chairman.
Earlier, Clayton explained the ICO classification. In April, he cited the example of a “token for laundry”, with which you can pay for laundry services, and therefore the coin cannot be classified as a security.
“If I own the tokens of the laundry and I can pay for the corresponding services, then this is not a security. But if laundries are only being developed, and I buy tokens with the goal of selling them a year later and making a profit in this way, then this is a security”, he said.