Bitcoin is not a value according to SEC
"Bitcoin is not a guarantee" The U.S. Securities and Exchange Commission (SEC) has officially restated that BTC has no value.
In a letter to the Cipher Technologies Bitcoin Fund dated October 1, the SEC rejected the investment company's registration statement alleging that Bitcoin is not a security.
According to the letter, Cipher attempted to register an "investment company" under the Investment Companies Act of 1940, assuming that Bitcoin is a security.
The letter in question notes that Commission staff carefully reviewed the letter of June 14, 2019, and considered their opinion according to a prior meeting and note that they do not agree on the conclusion that Bitcoin is a security. The commission staff believes that the conclusion is incorrect when analyzing digital assets.
The United States is considered by many to be the world's leading power, a title that raises the importance of this nation in international trade. That is why, when talking about BTC, the American nation has a powerful capacity to boost or dissipate investment possibilities in this market.
According to the letter:
Among other things, we do not believe that current Bitcoin buyers rely on the essential management and entrepreneurial efforts of others to produce profits.
Consequently, because Cipher intends to invest all of its assets substantially in BTC as currently structured, it does not meet the definition of an "investment company" under the Investment Company Act.
The staff further notes that if Bitcoin were security, as stated in their June 14 letter, then it would pose other substantial problems.
Where they point out, for example, that Bitcoin would be an unregistered, publicly offered security and, among other things, would potentially represent the proposed Bitcoin subscriber.
The letter also emphasizes that the staff will not perform an additional review of Cipher in its current form. The securities regulator also noted that Cipher did not adequately comply with legal and investor protection standards.
Since early 2012, U.S. government institutions have expressed concern about the advanced use of unregulated cryptocurrencies, as well as the fact that they represent a conceptual change from the traditional financial system that dominates the U.S. market.
About The Author
Juan AponteI am an industrial engineer specializing in blockchain. Enthusiast of cryptocurrencies and writing the latest news regarding the Crypto world.
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