The United States Securities and Exchange Commission (SEC) has but once again formally acknowledged that Bitcoin (BTC) just isn't a safety.
In a letter to Cipher Technologies Bitcoin Fund dated Oct. 1 the SEC declined the funding firm's registration assertion on the grounds (amongst others) that Bitcoin just isn't a safety.
Per the letter, Cipher tried to register an "investment company" below the Investment Company Act of 1940, implying that Bitcoin is a safety.
Not a safety
The SEC workers, then once again, has argued Cipher's reasoning below the Howey check and its framework for analyzing digital holding written in April. The letter states:
"Among other things, we do not believe that current purchasers of Bitcoin are relying on the essential social control and entrepreneurial efforts of others to produce a profit. Accordingly, because Cipher intends to invest well all of its assets in Bitcoin as presently structured, it does not meet the definition of an 'investment company' under the Investment Company Act and it has inappropriately filed on Form N-2."
If Bitcoin was a safety, points would happen
Furthermore, the SEC extraly far-famed that if Bitcoin was a safety, "it would then raise substantial other issues." More exactly, the cryptocurrency in query could be "an unregistered, publicly-offered security, and, among other things, it possibly would render the planned fund an underwriter of bitcoin."
Lastly, the securities governor extraly far-famed that Cipher didn't adequately adjust to authorized and investor safety norms. The letter concludes by expression that the SEC "staff will not conduct extra review of Cipher in its present form."
As Cointelegraph reported per week in the past, debates are notwithstandin on-going on whether or not XRP, the third-largest cryptocurrency by market capitalization, is a safety.
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