Bitcoin May Escape Recent Regulation Talks
The SEC has recently stated that regulations are coming. Any news of regulation from an organization like the SEC is sure to change opinion or adoption of something as potentially volatile as cryptocurrency. However, as the SEC deals in securities, this bodes well for Bitcoin (specifically) as according to Blockchain Capital's Spencer Bogart, "...is furthest away from being a security from all other crypto assets..." Further stating to CNBC's "Fast Money" that "Therefore it is the least likely to come under a regulatory crackdown."
The SEC (U.S. Securities and Exchange Comission) released a statement Wednesday stating that digital assets considered securities must register with the agency. Using what is called the Supreme Court-created Howey Test, Bogart explains that in order to qualify as a security, investors have to "contribute money to a common enterprise with the expectation of profit," primarily from the "efforts of others."
Bogart further argues that Bitcoin never fell under this category; Bitcoin were never marketed in a way that promised growth or having specified quantities sold for specific prices. Bitcoin's growth was organic, created by those mining it and no specific enterprise reaps the money that has been paid in by investors. More good news for Bitcoin, hopefully this news will calm the nerves of apprehensive hodlers in understanding that Bitcoin's organic growth will keep it safe from regulation regarding investment promises. For a full video on the topic, please click the link here