RATE Group | If Bitcoin Was a Security, It Would ‘Raise Substantial Issues’
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If Bitcoin Was a Security, It Would ‘Raise Substantial Issues’

06 Oct If Bitcoin Was a Security, It Would ‘Raise Substantial Issues’

Posted at 11:45h in Bitcoin News by

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The United States Securities and Exchange Commission (SEC) has yet again officially stated that Bitcoin (BTC) is not a security.

In a letter to Cipher Technologies Bitcoin Fund dated Oct. 1 the SEC declined the investment company’s registration statement on the grounds (among others) that Bitcoin is not a security. 

Per the letter, Cipher attempted to register an “investment company” under the Investment Company Act of 1940, implying that Bitcoin is a security.

Not a security

The SEC staff, on the other hand, has argued Cipher’s reasoning under the Howey test and its framework for analyzing digital assets published in April. The letter states:

“Among other things, we do not believe that current purchasers of Bitcoin are relying on the essential managerial and entrepreneurial efforts of others to produce a profit. Accordingly, because Cipher intends to invest substantially all of its assets in Bitcoin as currently structured, it does not meet the definition of an…

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