The SEC Will Release A Guide To Security Tokens
The director of the corporate finance of the US Securities and Exchange Commission (SEC) announced that the Commission will soon publish a Handbook that will help identify cases in which a token becomes a security. Today, one of the main conditions for the recognition of the token as a financial instrument, the SEC considers the expectation of return on investment.
The US Securities and Exchange Commission (SEC) plans to clarify the law in terms of the circumstances under which tokens become securities. This was last Friday at the conference of D.C. Fintech Week, said the Director of the SEC for corporate Finance William Hinman.
Speaking at the event, Hinman said that the Commission plans to issue a Handbook “in simple English”, which will help plan the primary sales of tokens. The document should clarify in which cases tokens can be classified as securities. At the same time, the SEC representative did not name the exact timing of the publication of the new guide.
William Hinman added that if the initiators of the initial token offers doubt about regulation, they can apply to a new SEC body called FinHub, created to promptly respond to questions about the compliance of tokens with the characteristics of financial instruments.
According to the director the Commission is considering such aspects as reporting, method of evaluation and storage of tokens. All these procedures will be included in the future collection. In addition, it will contain the rules of regulation of transactions in the secondary market.
When asked about the specific cases in which the SEC will determine the token as a security, Hinman replied that the Commission will check such factors as the expectation of return on investment.