Digital form of money will registered under the SEC: US
Digital currency exchanges would subsequently be governed by the same rules as traditional exchanges. For this reason, they have to register with the SEC "as national securities exchange or be exempt from registration".
US Securities and Exchange Commission (SEC) now requires that platforms trading Crypto assets which meet the definition of a security must register with the agency as an exchange, as per publicreport statement issued by the regulatory body on Wednesday, March 7.
In the announcement, the SEC warns that many online trading platforms referring to themselves as exchanges are currently unregulated, though they can give the impression that they are compliant with the regulatory standards.
The SEC added that entities aiming to operate as an alternative trading system (ATS) are also subject to regulatory requirements. Exchanges of this kind should register with the SEC as a broker-dealer and become a member of a self-regulatory organization (SRO).
As per the statement, the SEC is undertaking these regulatory measures "to protect investors and inhibit against fraudulent and manipulative trading practices." The agency is also open to assisting trading platforms implementing new technologies to comply with federal securities laws.
In February 2018, at a SEC and Commodities and Futures Trading Commission (CFTC) joint senate hearing, SEC director Jay Clayton guaranteed brilliant and viable controls for trades and financial specialists managing Bitcoin and Ethereum, while Initial Coin Offerings (ICO) would be met with more tightly controls.