Securities and Exchange Commission (SEC) stance on cryptocurrencies could become clear when the U.S regulator holds an investor conference on June 13, 2018, in Atlanta, at the Georgia State University. The town hall event is highly anticipated, as its outcome could have a significant impact on how crypto, assets are treated going forward.
SEC Town hall Meeting
The event will cover a lot of topics in the Fintech space with cryptocurrencies top on the agenda. Attendants will have an opportunity to have informal discussions with members and staff of the SEC. The town hall meeting comes at a time when the nation is indecisive on how cryptocurrencies should be treated and the kind of regulations that should apply to them.
While the SEC is not expected to make an official declaration about digital currencies, its tone on the matter could provide suggestions on the direction the agency is planning to take. A positive tone coupled with good news should have a positive impact on cryptocurrencies most of which are expected to rally.
However, the SEC reacting negatively and showing concerns could have severe repercussions for virtual currencies that until now have remained under pressure, amidst regulatory uncertainty. The scale of how the cryptocurrencies will react will only become clear after the event, as cryptocurrencies have proved to be extremely volatile in the recent past.
Cryptocurrency Securities Talk
Until now, the SEC has hinted at the possibility of treating cryptocurrencies as securities as people buy them with the aim of generating some profit on their prices rising. The agency has been pushing securities law to apply on virtual currencies for quite some time.
Should cryptocurrencies be treated as securities, then scrutiny is expected to be expanded to companies involved in trading rather than focusing only on digital coins and their developers. Security classification could see such investments subjected to increased taxations compounded by restrictions on who can invest and who cannot.
The SEC has remained fixated on regulating Initial Coin Offerings. However, it has also hinted at the possibility of passing regulations to govern cryptocurrencies as a way of taming investor fear in the sector.
Disclaimer: Nothing in this article should be construed as financial advice in any way, nor as an encouragement to engage in cryptocurrency trading activity. This article was not sponsored by any entities or companies mentioned in the article. The only purpose of this article is to inform/educate on the topics discussed in the article.
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