Will Ethereum be recognized as a security by sec

1. Recently, the scale of financing in the ICO market has been reced to 1 / 10 of that at the beginning of the year, and the financing mode of STO in the market has become the financing mode expected by investors
in practice, the US ICO is mainly supervised by the SEC and CFTC. The securities and Futures Commission of the United States classifies all the tokens except bitcoin and Ethernet into securities, and regulates all the securities tokens
the SEC will test the project itself according to specified standards to determine whether it is a "security." If it is judged to be a security, the project will be regulated by the sec. It is in violation of U.S. securities laws if it has been ICO registered or exempted from registration in accordance with relevant securities regulations. There are mainly three relevant securities regulations, regulation a + (small listing), regulation D (private investment), and regulation s
to put it simply, register an American company, standardize token according to SEC standards, and issue it with sto certification.

2. On August 28, an insider of China Securities Regulatory Commission confirmed to reporters that the recent hot ICO has attracted the attention of the regulatory authorities and is currently preparing various materials“ At present, ICO has great risks. In the long run, it will definitely be included in the regulation. "

according to Caixin, the relevant regulatory authorities will take action against ICO. Whether to ban the program is under discussion, the central bank, the CSRC are involved. The legal basis for this action comes from the measures for banning illegal financial institutions and illegal financial business activities promulgated in 1998
the reporter learned from a person in the instry that many departments including the financial market department of the central bank have stepped up their research on ICO, but there are still some related problems to be solved
according to a number of instry insiders, on August 18, the central bank, China Securities Regulatory Commission and China Banking Regulatory Commission organized a special ICO forum, which was interpreted as a "landmark event" in the instry, and it was only a matter of time before it was brought into regulation< On July 25 this year, the securities and Exchange Commission (SEC) issued a report on the Dao, which determined that its token was securities. At the same time, it emphasized that any act of buying or selling securities in the United States, whether it was real currency purchase or token distributed with blockchain technology, must comply with the securities law of the United States
according to the definition of financial market division on the official website of the central bank, its main responsibilities include drawing up the development plan of financial market, coordinating the development of financial market, and promoting the innovation of financial procts; In addition, the Bureau of currency, gold and silver is responsible for drafting the relevant measures for currency issuance and gold management, organizing the implementation and undertaking the work of RMB management and anti-counterfeiting currency< According to the regulatory practice of the US Securities Regulatory Commission, ICO is defined as a securities issue. Therefore, if China draws lessons from it, it should also be supervised by the CSRC. However, in China, the digital currency is supervised by the central bank. Therefore, it is the central bank and the CSRC that jointly study and decide who will supervise the digital currency< Since the first half of this year, the number of domestic ICO projects funded by virtual currency has increased explosively, which has aroused controversy over whether ICO is illegal in raising funds
according to the report released by the national Internet financial security technology expert committee, since 2017, the cumulative financing scale of ICO projects completed through various platforms has reached 63523.64btc, 852753.36eth and some RMB and other virtual currencies. Based on the zero point price on July 19, 2017, it is equivalent to RMB 2.616 billion in total. The total number of participants reached 105000
on August 24, the CBRC made regulations on virtual currency financing for the first time. The CBRC drafted the "Regulations on the disposal of illegal fund raising (Draft for comments)" (hereinafter referred to as the draft for comments) and pointed out that the illegal fund raising administrative investigation should be carried out in the name of virtual currency without legal permission or in violation of the relevant provisions of the state. The participants of illegal fund-raising shall bear the losses caused by their participation in illegal fund-raising
it is reported that Huo Xuewen, director of the Beijing Municipal Bureau of financial work, once pointed out at a closed door meeting that all activities of "managing other people's money" should be included in the supervision
Wu Xiaoling, deputy director of Finance and Economics Committee of the Standing Committee of the National People's Congress and chairman and President of Wukou School of finance of Tsinghua University, also publicly pointed out a few days ago that internationally, ICO has been regulated as a kind of securities in the United States. The people's Bank of China has also made a corresponding statement to bitcoin (pointing out that bitcoin does not have monetary attributes), and further regulatory measures are expected
a blockchain practitioner said that "blocking is better than sparing". Supervision is expected, but if it is totally negated, some enterprises will inevitably move ICO abroad<

4 ask ICO
1. Should ICO be included in the regulation
Tang Ling, CEO of Zhigui technology and general initiator of ink chain, told reporters that ICO should be included in the regulation. Under the demonstration of wealth effect, there are too many "pyramid selling currency" and "air currency" at present. Many projects can be financed before they are determined. Investors are crazy about speculating in currency, and the risk is great
Xiao SA, director of China Science and Technology Finance Law Research Association, believes that the national financial work conference emphasizes the need to strengthen the "professionalism, unity and penetration" of financial supervision, and all financial businesses should be included in the supervision. ICO should also be regulated. Financial innovation has vitality only when it is in accordance with the law, and any violation and abuse will be counterproctive
Li Lin said that since there is no supervision on the use of funds after ICO financing, the whereabouts of funds after ICO financing have become a mystery. He suggested that regulators should pay attention to the appropriateness of investors
2. How should ICO be supervised
Tian Ying, vice president of okcoin, believes that the first step in the supervision of ICO is to clarify the legal nature. The registration management of ICO's enterprises and the open and transparent trusteeship management of ICO's tokens should be carried out. The project sponsor, token circulation platform and the third-party propaganda organization should strengthen the inspection of the authenticity of the project, increase the risk ecation of investors, and effectively control the risk. These regulatory measures can be implemented after qualitative analysis. There are also many legal experts who suggest to refer to the financial technology sandbox regulatory system implemented in the UK and Singapore to minimize the contradiction between innovation and risk
for how to supervise, Tang Ling suggests setting up project audit and e diligence. At present, the ICO project is "self-examination and self passing meeting". Although the agent investment platform will also audit, it has not been put on record. At the same time, we should set up the fund trusteeship. In the early stage, some media exposed that indivial platforms used capital precipitation to buy financial procts, which was caused by the lack of fund custody, and it was easy for the platform to roll up money and run away. In addition, standardized management, the funds should not be allocated at one time. Many entrepreneurs haven't seen so much money and don't know how to spend it. It's easy to have problems
Xiao SA believes that the specific regulatory focus is: proct registration, information disclosure, asset custody, project authenticity and qualified investment
"proct registration is an effective way for regulators to understand and monitor high-risk financial business; Information disclosure is a routine scheme, which can make the project more transparent; Asset custody to prevent stakeholder cases; Project authenticity is the minimum requirement for ICO issuers; Qualified investment, matching the risk and investors, restricting speculative funds. " Xiao SA said
3. What are the difficulties of ICO supervision
Tang Ling said that the regulatory difficulty lies in that many platforms can now achieve ICO through smart contracts, especially through Ethereum projects, which can be raised by themselves without going through the platform. There are many private placements with high risks
Tian Ying believes that identifying the nature of ICO is a difficulty in promoting supervision. ICO is a bit like crowdfunding, but it is not exactly the same as crowdfunding. A while ago, the SEC of the United States announced the results of the investigation on the Dao token, believing that the token has the scope of securities and is under the supervision of the securities and Futures Law. This judgment is also the result of a lot of research and analysis by US regulators. Some non security tokens may expect the right to use certain procts, which does not belong to the category of securities
she believes that ICO is an Internet proct, and some ICO projects are operated globally. In the process of management, international coordination needs to be strengthened. What's more, how far should supervision go
Xiao SA said that there are differences in the instry on the nature of ICO. If we define the essence of ICO as "barter" and exchange one special virtual currency for another, it can be explained
if the ICO project directly raises "legal currency", including RMB, US dollar, euro, etc., it can be understood as "deposit" of illegally absorbing public deposits. Once it meets the requirements of article 176 of the criminal law on the crime of illegally absorbing public deposits, it may constitute a crime
Xiao SA believes that if the ICO project has a dividend clause, it has an equity mark; if the project has a repurchase clause, it is suspected of "capital preservation and interest preservation". It is similar to a financial proct, and it is actually an illegal operation to issue a financial proct without a license. In judicial practice, if illegal business is difficult to define, then the above behavior is likely to be identified as pyramid selling. Many ICO projects in the promotion process, there are promotional incentives, such as "pull an investor back token."
4. The impact of regulation on ICO
Xia Hu, CEO of Weiyou Yuanjie, told the Beijing news that regulators should regulate the development of ICO, especially the establishment of "qualified investor system", because many ordinary investors do not have the ability to bear high risks and should not participate in such high-risk projects. If there is no qualified investor system, it is easy to cause social problems
as for the regulatory impact, Tian Ying said that in the short term, it will have an impact on the current market, and in the long term, it will be concive to the sustainable and healthy development of the entire digital asset instry, so as to truly make the market healthy first and then efficient. On the other hand, supervision will also enable high-quality projects to present their value
according to a research report of Huachuang securities, the innovation trend of ICO is worthy of attention. In the long run, with its growing influence, it is necessary to accept supervision to promote the healthy and orderly development of the instry. ICO platforms or projects with strong strength are expected to take the lead in embracing regulation, balancing innovation attributes and potential risks, and become the beneficiaries of ICO's future development.

3.

The US SEC and CFTC will discuss whether Ethereum and reborn are securities today. In fact, this news began to spread as early as the end of April. I also mentioned on April 24 and 25 that there are three kinds of news that can have an impact on the market. One of them is the information impact of the United States on the regulation of ICO and whether Eth and XRP are classified as securities. In the past two days, the market reaction after the fermentation of this kind of news is the situation of the market's weak rebound after the correction of the market. Once again, we have panic and selling behavior on this kind of news

the safety point of bulls is 8400. As long as the price does not break 8400, the overall market trend will graally fluctuate upward. Don't be too influenced by the news. If Eth and XRP are not securities, the market will probably go up, but it may be a slow upward trend. After all, the market panic has been caused, and the previous rebound market has been interrupted. It will take time to ease the situation if we want to stimulate everyone's confidence and admission mood again. If there is an obvious negative conclusion, the market will continue to explore downward, but the momentum of decline is limited. After the news is relieved, the market will take off again

4. Yes, please accept

5.

According to the data of okcoin, a well-known digital asset trading platform in China, yesterday, the opening price of Ethereum was 1463.00, the highest price was 1545.00 and the lowest price was 1451.01, closing at 1490.99. The closing price rose by 1.85% and the amplitude was 6.48%. Today, Ethereum opened at 1487.29, basically flat

According to analysts of okcoin, the price has shown signs of strengthening in recent trading days, with the price moving up at the low point of each adjustment. At present, the price is in a high consolidation, most of the time trading in the 1480-1530 range

To sum up, the 4-hour moving average system tends to be long, and the MACD index runs in strong regions, so it is more likely that the intraday price will continue to rise after a small adjustment. Focus on 1460 first-line support within the day. If the price stops falling and rebounds near this price, it means that the market is still strong. If it falls below this price, it will weaken, or test 1420 first-line long short watershed again

NASDAQ has entered into an agreement with major Swiss stock exchange operators to integrate blockchain into OTC procts and services. According to an application document released by the US Securities and Exchange Commission, NASDAQ, which has been studying blockchain technology since 2015, has reached an agreement with six Swiss Exchange, a subsidiary of six group. It is worth noting that six group is also testing blockchain technology through its SiC securities business line

the SEC document said: "in July 2017, NASDAQ signed an agreement with six Swiss Exchange to implement a solution based on distributed ledger technology for six OTC procts, and further use the NASDAQ financial framework (NFF) to promote the commercialization of blockchain technology

although it is not clear when the OTC solution will be developed and whether the deployment timeline has been formulated, this news is the latest progress of NASDAQ in promoting the commercialization of blockchain

for other blockchain projects of NASDAQ, in May this year, the stock exchange and financial giant Citibank reached a cooperation to jointly carry out blockchain payment research. Earlier, in March this year, NASDAQ revealed that it was providing blockchain technical support for a digital media contract exchange

In addition, NASDAQ also expressed its desire to invest more blockchain start-ups, and plans to invest tens of millions of dollars

NASDAQ is one of the most active exchanges in the field of blockchain in the world. In addition, the London Stock Exchange, the Hong Kong Stock Exchange and the New York Stock Exchange have publicly developed blockchain solutions. Not long ago, the London Stock Exchange, one of the world's four largest exchanges, announced its cooperation with IBM to create a blockchain securities platform for small and medium-sized enterprises. The Hong Kong Stock Exchange also announced the launch of a blockchain private stock exchange in 2018

6.

Ethereum is a cryptocurrency whose market value is only lower than that of bitcoin. The emergence of Ethereum also makes up for the lack of scalability of bitcoin. After five years of development, Ethereum has accumulated a large number of fans. Ethereum's concise functional application highlights its own advantages, but Ethereum, which has been developing smoothly, has encountered a "blow", In an interview, SEC Chairman Jack Leighton made it clear that Ethereum was a security, which caused an uproar and led to a crisis of trust in Ethereum

some days ago, people have been worried that once Ethereum is identified as a security, most Ethereum transactions will be banned. Once Ethereum trading stops in the U.S. market for some reason, its currency price will plunge, and other Ethereum related cryptocurrencies will avalanche one after another, or even withdraw from trading. The blow to the coin ring is unimaginable

If Ethereum is really a security, the consequences will be unimaginable. After all, Ethereum has a very small position in the currency circle. Most people have Ethereum in their hands, which may make the Ethereum in the hands of investors depreciate significantly, which will bring a disastrous blow to the currency circle. Whether Ethereum can survive the disaster will make the exchange and investors sweat. For more details, please click

7. Recently, it has risen very fast, up to 60% in one day at most. The market value has returned to the peak before the year, so the market is very optimistic. You can add leverage to the coin. Go and have a try.

8.

The securities and Exchange Commission (SEC) identified XRP as a security, and hired 21 lawyers to step up preparations to fight the SEC's lawsuit against XRP

at present, the case is still in progress, and the result will be known in the next few months

9.

The use of blockchain is an important step to realize the digitization of trade. The overall efficiency it brings to trade financing ensures cost-effectiveness, faster turnaround time and may bring liquidity to enterprises

as early as August this year, there were a lot of discussions about sto mode at home and abroad. On September 11 this year, the developer Stephane Gosselin submitted a new proposal of Ethereum - "erc1400" standard applicable to sto in GitHub. In October this year, the possibility of NASDAQ's intention to launch sto exchange was revealed, so some people think that sto is probably the next big thing, It's a turning point for the bear market to turn upside down

Generally speaking, STOs issued overseas are exempted by the SEC, and there are four criteria for identifying token as securities: 1. Whether there is capital investment; 2; 2. Whether to invest in a common cause; 3. Whether they expect to make profits; 4. Whether the profit depends on the efforts of others

In fact, both ICO and sto need to register a principal company overseas, and sto issuance is also subject to the securities law, and the process only needs to follow the process of securities issuance