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Statement from SEC- ShapeShift to review cryptocurrency listings

In the recent statements on Initial Coin Offerings (ICOs) from the Exchange Commission and US Securities, exchange service is reviewing its cryptocurrency listings.

In the recent post, the exchange declares it was launching the review that could delist few trading pairs it offers. It is in a bid to avoid being “mischaracterize as a securities exchange”.

Previously, as Coinpedia reported, the SEC had been investigating the DAO, wherein, Ethereum based funding vehicle that raised more than $150 million through a token sale. Ultimately, an agency rule those tokens that were sell out and freely trade on cryptocurrency exchanges.

In the statement that ShapeShift has asked its lawyer to examine the Howey test. It is a long-standing test used to determine whether certain assets qualify as securities. So, it was for examine that whether it applies its tokens lists. This eminent development signifies that SEC statement is having some influence on the start-ups. Therefore, it simplifies the exchange of blockchain based tokens.

ShapeShift explained in a blog post:

“This means that we may need to delist some types of tokens from the platform. It 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”.

According to the statement, as review moves ahead there will be a massive impact on US-based customers of ShapeShift.

The startup says, “Once done with analysis, few tokens may be detach from the service for individuals within the US. It is for who will not interact with these technologies safely through ShapeShift platform”. Later on adding, “Howey test is considers to all new tokens we list”.

Image Source: SEC

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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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