SEC’s Jay Clayton and William Hinman reiterate Howey is here to stay

In his June 6, 2018, interview with CNBC, Securities and Exchange Commission (“SEC”) Chairman Jay Clayton further clarified the regulatory landscape around cryptocurrencies, blockchain technology and initial coin offerings, nothing that the SEC would not support changing the traditional definition of a security to take into account this new technology: “Where I give you my money and you go off and make a venture … and in return for me giving you my money, you say, ‘You know what, I’m going to give you a return.’  That is a security, and we regulate that.  We regulate the offering of that security, and we regulate the trading of that security.” Clayton did, however, reinforce the notion that cryptocurrencies acting as currencies used for carrying out transactions, Bitcoin for example, will not be regulated by the SEC.  He went on to explain where a cryptocurrency could be a replacement for sovereign currency –…

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