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SEC chairman: not all tokens are securities

In the latest speech at an event dedicated to cryptocurrencies at a Princeton University, the SEC leader has outlined the possible scenario in which a digital token is not considered a security.

According to Jay Clayton, there are various types of tokens, while some of them are used for simple functional bonuses, others are offered as something than can be used in the future and their price is changing, this is becoming to look like a security. What makes the situation even harder is that some tokens, while not having security properties initially, can be updated or changed over time into something closer to securities. And contrariwise: tokens to which the rules of securities trade are applicable right now can lose the attributes of stocks in the future.

Mr. Clayton has also disagreed with the concept that all ICOs are frauds, although he noted that the mechanism was too vulnerable. He has also praised the distributed ledger technology in general.

Speaking of regulations, Tom Lee from Fundstrat has connected the future possible growth of the market to the end of the period when businesspeople and traders are paying taxes. It’s April 17 in America.

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