Securities and Exchange Commission (SEC) which cryptocurrency While trying to define what units can be classified as securities, the Blockchain project Chia Coin‘of CCO Gene Hoffman In his recent tweets, he shared his perspective to clear up some of this confusion.
Cryptocurrency Manager Says XRP and Cardano (ADA) Are Always Securities
Hoffman especially Bitcoin (BTC)), Litecoin (LTC), Dogecoin (DOGE) and XChange Coin‘to (XCH) He stated that these are not securities.
Hoffman, a veteran technology executive, explained that beyond trying to classify different coins as non-securities or securities, projects should not rely on selling their tokens or coins to investors to raise funds legally in the US.
Instead, there are well-known ways to do this without putting potential investors at risk, he said.
Hoffman also recently predicted that the SEC would win this legal battle against Ripple. According to him, a federal judge will eventually conclude that XRP is a security.
While cryptocurrencies certainly have the characteristics of securities, it is important to note that not all cryptocurrencies are necessarily securities.
Bitcoin in particular is generally considered a decentralized and non-secure currency; that is, it does not provide investors with a share of ownership in a project or a portion of the profits from the project’s venture.
John Reed Stark, former head of the Securities and Exchange Commission Internet Enforcement Office, recently suggested that the flagship cryptocurrency Bitcoin should also be classified as a security.
*Not investment advice.
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