- There’s been a dispute between the telegram group and the securities and exchange commission in the United States.
- This is over the former claiming its GRAM token is on a similar level to that of bitcoin and ETH.
There’s been a dispute between the telegram group and the securities and exchange commission in the United States over the former claiming its GRAM token is on a similar level to that of bitcoin and ETH.
Along with the Commodity Futures Trading Commission, they filed a letter that stated they understood the argument telegram were putting forward for its planned cryptocurrency. Furthermore, one of the key arguments made was whether it was to be a commodity or security. The token was deemed to be a commodity and so with this, it will not be subjected to registration under the 1933 securities act.
“The following represent the views of the CFTC’s Office of General Counsel, and not necessarily of the CFTC itself or of any individual Commissioner, but our views are relatively straightforward: Digital currency is a commodity.”
Moreover, it also stated that since a lot of securities are considered commodities under the Commodity Exchange Act, a lot of cryptocurrencies can - or cannot - be subject to the securities. On top of this, the letter further highlighted whether an asset comes under securities law or not.
The letter highlighted that many securities fall under the third ‘prong’ of the commodities definition- “Catchall for Services, Rights, and Interests”. Despite this, it did not mention anything about the upcoming token from telegram and whether or not it will be considered a security.
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!