Two of the popular media houses of USA have reported that Big money Venture Group has secretly met with the US Securities and Exchange Commission (SEC). SEC’s actions regarding the Crypto Sector has made many institutions look for protection of their coins and the major priority for Big Money was finding a safer place for Ethereum.
SEC’s intervention and Big Money’s stance:
SEC has been active in putting forth its argument regarding the sector. This has given rise to mixed opinions about the government’s actions on the Digital Currency Industry. The journal named Politico, has put together this story by stating, “group of venture capital firms with investments in digital currency-related companies has asked the SEC for a safe harbor from securities laws for certain projects”. A fifty page document was submitted to the SEC which argued “that while certain digital tokens sold to select investors before wider availability may qualify as securities, they should be granted protection from regulations once they are used for a non-investment purpose”.
Big Money’s concern:
Ethereum has become the primary concern for the group. Big Money’s notice to SEC states, Ether “is a good example of this type of protocol token that has become so decentralized it should not be deemed a Security.”
Ethereum is considered to be the reason behind the popularity of crowd funding with ICOs. 2017 saw an unmatchable rise of ICOs and the SEC considers that all these should be categorized under Securities and hence, should come under their jurisdiction.
No final status provided by SEC :
On 28th of March, two of the biggest and the most established capital funds met with the SEC, aiming to showcase their stance to allow some of the tokens to be put under ‘utility tokens’ rather than securities. On the other hand, some of the digital coins like BCH that hasn’t originated from ICOs are found safe and decentralized. However, the SEC has not provided any statement regarding the finality of this argument.