SEC Statements Spur ShapeShift to Review Cryptocurrency Listings


Cryptocurrencyexchange service is examining its listings because of current statements on preliminary coin offerings (ICOs) from the United States Securities and Exchange Commission.

Ina new blog post, the exchange stated that it was releasing the review, which might see it delist a few of the trading sets it uses, in a quote to prevent being “mischaracterized as a securities exchange.”

AsCoinDesk formerly reported, the SEC revealed last month that it had actually been examining The DAO, the ethereum-based financing car that raised more than $150million through a token sale. The company eventually ruled that those tokens– which were offered and later on easily traded on cryptocurrency exchanges– certify as securities, and that other token sales might fall under this meaning.

It’s because of this declaration that ShapeShift has actually asked its attorneys to take a look at whether the Howey Test — an enduring test utilized to figure out whether specific possessions certify as securities– uses to the tokens it notes. It’s a significant advancement which indicates that the SEC declaration is having at least some influence on the start-ups that help with the exchange of blockchain-based tokens.

ShapeShiftdescribed in the article:

“This means that we may need to delist some types of tokens from the platform, which is unfortunate for our users who have enjoyed the ability to participate in these experimental and innovative technologies. We have thus instructed our counsel to examine the tokens available on ShapeShift, especially through the lens of the Howey Test, which is the test the SEC applies to determine the presence of a security.”

Asthe declaration goes on to recommend, US-based consumers of ShapeShift might be the ones that feel the most significant effect as the review continues.

“As that analysis is done, certain tokens may be removed from the service for individuals within the United States, who will then no longer be able to interact with these technologies safely or transparently through the ShapeShift platform,”the start-up stated, going on to include that it might “consider the application of the Howey test to all new tokens we list.”

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in ShapeShift.

SECimage through Flickr

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