The chairman of the US Securities and Exchange Commission (SEC) said in a video interview with CNBC that cryptocurrencies such as Bitcoin would not be considered securities by the SEC.
SEC Chairman Jay Clayton said cryptocurrencies, which acted as replacements for sovereign currencies, were not a security, however he believed blockchain technology was still promising.
“Distributed ledger technology [has] incredible promise. It can drive efficiencies not only in financial markets, but in a lot of other markets,” said Clayton.
Clayton added ICOs will still be subject to the same SEC regulations as traditional securities.