SEC bars 3 cryptocurrencies from ICOs, trading pairs
The Securities and Exchange Commission (SEC) has removed three cryptocurrencies from a list of those allowed for initial coin offering (ICO) investment and as a trading pair for the digital asset trade.
Bitcoin cash (BCH), ethereum classic (ETC) and litecoin (LTC) have been removed from the list of accepted cryptocurrencies, according to the SEC.
Such removal does not have an impact on investors or businesses involved with digital assets, since there is still no authorised ICO and local digital exchanges do not use BCH, ETC and LTC as base trading pairs, the SEC said.
Bitcoin (BTC), ethereum (ETH), ripple (XRP) and stellar (XLM) remain as cryptocurrencies allowed for investing in ICOs and as a base trading pair for valuation of digital assets registered with digital asset exchanges.
The latest announcement is not tantamount to authorising these cryptocurrencies as legal tender for payment or approving them with lawful status, according to the SEC.
The regulator said cryptocurrency selection is based on an assessment of cryptocurrency development, related news and other important factors.
In July, the SEC announced a list of seven cryptocurrencies accepted as mediums of exchange when conducting ICO transactions.
The main criteria for cryptocurrencies the SEC has announced include sufficient market liquidity, a well-designed decentralised system and being able to use a trading pair with other cryptocurrencies.
The last requirement is similar to the standing of the US dollar. Many people exchange their local currency to the greenback while travelling abroad because of wide acceptance.