SEC and CFTC Take Historic Step for Cryptocurrencies! “Bitcoin (BTC) and 15 Altcoins Cited as Examples!”
U.S. regulators, the Securities and Exchange Commission (SEC) and the Commodity Futures Commission (CFTC), released joint interpretive guidance last night regarding the status of cryptocurrencies under current federal securities laws.
After years of difficulties for investors regarding the classification of securities and commodities, regulators have finally taken a significant step towards achieving the long-awaited clarity.
Accordingly, the SEC and CFTC defined digital commodities in this document, citing 16 altcoins as examples.
According to the shared guidelines, an asset must meet certain criteria to be considered a digital commodity. Accordingly, a crypto asset is categorized as a commodity if its value is based on the programmed operation of the system and the balance of supply and demand, rather than on expected profit.
The cryptocurrencies listed in the guidance published by the SEC and CFTC are as follows: “Aptos (APT), Avalanche (AVAX), Bitcoin (BTC), Bitcoin Cash (BCH), Cardano (ADA), Chainlink (LINK), Dogecoin (DOGE), Ethereum (ETH), Hedera (HBAR), Litecoin (LTC), Polkadot (DOT), Shiba Inu (SHIB), Solana (SOL), Stellar (XLM), Tezos (XTZ), and XRP (XRP)”
It was stated that these 16 cryptocurrencies do not fall into the category of securities.
*This is not investment advice.
Continue Reading: SEC and CFTC Take Historic Step for Cryptocurrencies! “Bitcoin (BTC) and 15 Altcoins Cited as Examples!”
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