The U.S. and securities


#1

I’m overwhelmingly hearing that the SEC is going to consider all coins which were ever sold as an ICO to be securities. As a US citizen what happens if tokens I’m holding are deemed to be securities. I.e. (Ether,icx,etc…) will It be illegal for me to sell these on an exchange?https://cointelegraph.com/news/sec-us-crypto-exchanges-not-enthusiastic-enough-about-regulatory-compliance


#2

This is just a pure guess but it is what I think will happen.

If a coin is classified as a Security then the exchanges that are not registered to trade them will delist them and probably give a grace period on this, but this will drop the price drastically. Those exchanges that are registered to trade securities will more than likely require some proof that you as an individual are allowed to trade securities.

It is this unknown why currently I am holding over 80% in BTC and mineable coins like BTC and Raven. I do own some ICX and others but a very small portion of my portfolio until this mess is sorted. By keeping only a small portion of my portfolio in ICO type coins my portfolio has less at risk. You will need to decide your best approach. Crypto itself is a high enough risk for my blood.


#4

This was a thoughtful reply to that article:
"Tokens are not securities. Utility tokens are not created to provide returns for token holders. Token holders are not considered “investors”. We have no voting rights, no right to dividends, to promise of any profits/returns. Token holders are simply people who believe enough in a project that they want to help fund the project team fund the project because the token holder wants to see the project come to life. However, it just so happens that the token can increase in value but it’s not increasing in value for the sake of token holder profits.

The token holder is just a token holder, not an investor in the same sense like an person is an investor in a stock.

So tokens are not securities."