SEC Regulates Crypto's! What does it mean?

The Security Exchange Commission has announced recently that Cryptocurrency Exchanges will be regulated as though they are selling securities that must pass the Hewey Test.

All registered exchanges must do the following:

(1) file with the Commission a notice of operation and quarterly reports; (2) maintain records, including an audit trail of transactions; and (3) refrain from using the words “exchange,” “stock market,” or similar terms in its name.

(1) grant or deny access based on objective standards established by the trading system and applied in a non- discriminatory manner; and (2) establish procedures to ensure adequate systems capacity, integrity, and contingency planning.

All this law jargon aside, the moral is that exchanges of the likes of BTC-E and start up icos are going to disappear.

These security steps may seem unfortunate, but it in the long run it provides a necessary safety net to the industry allowing un-educated investors more ease into giving us their money.

The downside of this is there will much more paper work involved in the process.

How do you feel about this?

Official Source: https://www.sec.gov/news/press-release/2014-111