Digital Assets Have A New Friend; The SEC


The SEC bullish on digital assets? Our very own Securities & Exchange Commission? Well, it seems so. While stepping in and cracking down on the ever so last years ICO’s and accompanying fraud, “irregularities”, etc the SEC noticed that there was a new asset class “out there”. Who would have thought? And guess what? They kind of like it. The chairman of the SEC (Jay Clayton) is quite optimistic on the developments of the distributed Ledger technology (DLT) and how it can be utilized within a regulatory framework. Perhaps the entry of Fidelity Digital Asset services, Coinbase and Bakkt (the NYSE’s venture) also caught the SEC’s eyes and realized they better get “on the stick” and take a positive stance. Nice to see positive movement. Read a bit more below.
(Bill Taylor/ Fintek Capital)

“In mid 2018 something extraordinary happened, ICO optimism faded due to rampant fraud and irregularities and crypto funds, and VC and digital asset marketplaces such as Bakkt and Fidelity took shape. The result is that the era of “crypto” buzz is coming to an end, but long live digital assets.

Digital assets are a more regulated way of viewing altcoins and how a true marketplace and decentralized app ecosystem will form for the long term. How digital assets are regulated by the SEC will usher in new opportunities, and new winners and losers in blockchain.

The Investment Company Act of 1940 (“Investment Company Act”) establishes a registration and regulatory framework for pooled vehicles that invest in securities. This framework applies to a pooled investment vehicle and its service providers, even when the securities in which it invests are digital asset securities.

Jay Clayton, the chairman of the U. S. Securities and Exchange Commission (SEC) appears very optimistic about the developments of the distributed ledger technology (DLT) and as blockchain adoption occurs, more regulation will follow. The likes of Bakkt, Coinbase and Fidelity Digital Asset services are kick starting a new era of digital asset investment that ushers in the fall of ICOs for more regulated (and less fraudulent) opportunities. In China, they are buzzing about the potential of STOs.

According to Clayton (SEC), the DLT technology can help to facilitate capital formation in the country. He said this during the U. S. Senate Committee on Banking, Housing and Urban Affairs. He also affirmed that the technology can have very promising investment opportunities for institutional and retail investors should they use it. While the blockchain and crypto buzz has died down in recent times, ‘digital assets’ may be the next phase of the cycle that’s mirroring the end of the stock market global recession cycle…”

Full Story By Michael K. Spencer at