John MacAfee To Fight Securities and Exchange Commission After Its Announcement on The Status of Bitcoin and Ether

SEC

John McAfee, a strongly opinionated figure in the virtual currency community, lashed out at the SEC (Securities and Exchange Commission) Chairman’s pronouncement citing the official’s decision to label ICOs as securities. Using the social media via his Twitter account, McAfee vowed to fight the pronouncement of the SEC’s Chairman.

McAfee on The Path of War

Since SEC Chairman Jay Clayton’s remarks regarding labeling ICO’s securities, McAfee has initiated a number of tirades via the social media. According to McAfee, categorizing ICO’s securities is “absurd and one he intends to fight to his last breath.” How the internet security magnate and cryptocurrency proponent intends to initiate his campaign against the SEC remains to be seen. The majority of his rants on social media are related to debates with the Securities and Exchange Commission accusing Clayton of overreaching.

Despite McAfee’s firm stance against the pronouncement of the SEC Chairman, he remains a law abiding citizen.

But Can ICO’s Be Labeled Securities?

The cryptocurrency ecosystem appears to still be in the development stage hence there are a few areas where consensus hasn’t been reached among stakeholders. One area is the regarding whether or not an ICO should be classified as securities. This argument is the result of the inability to define what virtual currency tokens are. The SEC sees Bitcoin (digital assets that are swapped for fiat) as non-securities.

The 1,600 digital currencies available are not fiat substitutes. These tokens offer access to digital platforms. Hence, many crypto enthusiasts call them utility tokens. The SEC disagrees. The regulatory commission calls these tokens securities because they are used to raise capital in public and can be traded in a secondary market.

According to recent reports in the virtual token ecosystem, a top Securities and Exchange Commission official ultimately declared that Ether isn’t a security which is a good development. However, whether Ripple will follow this part or not remains to be seen. The cryptocurrency ecosystem has to wait to see the SEC’s verdict on the virtual token.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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