Bitcoin is not a security
What's the story?
SEC Chairman Jay Clayton yesterday stated that, "It's a complicated area. Because, as you said, there are different types of cryptoassets. Let me try and divide them into two areas. A pure medium of exchange, the one that's most often cited, is Bitcoin. As a replacement for currency, that has been determined by most people to not be a security." In other words, Bitcoin is not a security.
Why Does This Matter?
This is the clearest indication yet that Bitcoin isn't a security. While the CFTC did deem it a commodity, as the Coin Center article above points out, that status is not set in stone. This is great reassurance for institutions as they won't have to be concerned about Bitcoin's legal status. Other cryptocurrencies still might be subject to the Securities Act of 1933. For the most part (there are exceptions), if you are deemed a security you need to trade on a national exchange, alternative trading system or have severe restrictions on how the security is traded.
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