SEC Issues Statement On Potentially Unlawful Digital Assets Trading Platforms

The SEC issued a statement outlining how online trading platforms have become a popular option for investors to buy and sell digital assets, including coins and tokens offered and sold in ICOs. It states that many such platforms provide a mechanism for trading assets that meet the definition of a "security" under the federal securities laws and that a platform that both offers trading of digital assets that are securities and operates as an "exchange" must register with the SEC as a national securities exchange or be exempt from registration. The statement outlines various considerations for investors using online trading platforms, resources for investors and considerations for market participants operating online trading platforms. Finally, it encourages participating entities to consult with legal counsel and the SEC as required to ensure compliance with securities laws.