US SEC Chairman: Many types of cryptocurrency ICOs are not under the SEC's jurisdiction.
TL;DR
SEC Chairman Paul Atkins stated that many ICOs, including those for network tokens, digital collectibles, and digital instruments, are non-securities and not under SEC jurisdiction. The SEC will focus on regulating tokenized securities, delegating other ICO matters to the CFTC.
Tags
According to ChainCatcher, as reported by The Block, U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins stated at the Blockchain Association's annual policy summit on Tuesday that many types of Initial Coin Offerings (ICOs) should be considered non-securities transactions and are not under the jurisdiction of Wall Street regulators.
He explained that this is precisely what the SEC wants to encourage, as these types of things do not fall under the definition of securities. Atkins specifically mentioned the token taxonomy he introduced last month, which divides the crypto industry into four categories of tokens. He pointed out last month that network tokens, digital collectibles, and digital instruments should not be considered securities in themselves.
On Tuesday, he further stated that initial coin offerings (ICOs) involving these three types of tokens should also be considered non-securities transactions, meaning they are not subject to SEC regulation. Atkins also mentioned that, regarding ICOs, the only type of token the SEC considers its agency should regulate is tokenized securities, which are tokenized forms of securities already under SEC regulation and traded on-chain.
He further explained that initial coin offerings (ICOs) span four themes, three of which fall under the jurisdiction of the US CFTC. The SEC will delegate these matters to the CFTC, while focusing on regulating tokenized securities.