The Securities and Exchange Commission said Thursday that so -called memecoins – digital active novelty – are not subject to regulatory monitoring because they are not considered as titles.
Determination could have great ramifications for the cryptography industry and President Trump, who published his own days before its inauguration.
The same -same dry policy is in accordance with the light regulatory approach that Trump promised to consult the cryptography industry during his campaign.
Trump and his family firmly adopted digital currencies last year by joining a new digital asset company, World Liberty Financial. The memecoin that the president introduced during the pre-inviginal festivities in January, called $ Trump, stimulated controversy because it was sliced wildly in value and generated heavy negotiation costs against Mr. Trump.
The DEC policy declaration did not refer to Mr. Trump or any other specific digital novelty. But the Commission has clearly recognized the risk for investors who put money in such products, even if he said he would not regulate them.
“Although the supply and sale of the same is not subject to federal securities laws, fraudulent driving linked to the supply and sale of the same can be subject to enforceable measures or proceedings by other federal or state agencies,” said the statement of the financing of the funding of the dry companies.
To achieve its conclusion, the SEC has used an almost centenary Supreme Court decision to determine that the same should not be considered an investment contract and therefore subject to regulatory monitoring.
Under Gary Gensler, who was president of the SEC under President Joseph R. Biden Jr., the regulator had used this same Supreme Court case to affirm that most digital assets are securities and subject to regulations.
The dry, apparently fearing, that traders and speculators can use its justification to escape the regulations, said that it would examine any new product that has tried to qualify as “same”.
The agency quickly decided to dismantle the aggressive approach adopted by Mr. Pensler in the regulation of cryptocurrencies. Its implementing measures have angry the cryptographic industry and have led many of its investors to contribute powerfully to Mr. Trump’s campaign, who was at some point a critic of cryptography.
Also on Thursday, the SEC officially decided to reject its application trial against Coinbase, one of the largest cryptographic companies in the country. The SEC also told a number of cryptographic companies which it ended in surveys on their activities.
The SEC also declared in a judicial file this week that he was trying to reach a regulation in a case of civil fraud which he had filed against Justin Sun, a cryptographic investor. Mr. Sun is also a World Liberty advisor and an important investor in his digital token. The charges against him do not imply his investment with World Liberty.
