Read

<p class="is-style-lead">In a significant development for the digital asset industry, the US Securities and Exchange Commission (SEC) has officially declared <a href="https://crypto.news/price/filecoin/">filecoin</a> as a security. </p>



<p>On May 17, the crypto investment business Grayscale Investments withdrew its application to launch a filecoin trust fund. Initially, Grayscale voluntarily filed Form 10 to the SEC to gain reporting status for the trust.</p>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            You might also like:
        </span>

    
    
        <a href="https://crypto.news/grayscale-launches-funds-trust-files-for-three-new-crypto-etfs/" class="cn-block-related-link__link">
            Grayscale launches Funds Trust, files for three new crypto ETFs        </a>

    
</div>


<p>However, the response from the regulator requires that the application is withdrawn now, as filecoin is treated as security. </p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">🚨NEW: <a href="https://twitter.com/Grayscale?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@Grayscale</a> says the <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@SECGov</a> has asked it to withdraw an application to launch a <a href="https://twitter.com/search?q=%24FIL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$FIL</a> Trust product on the grounds that it might meet the definition of an investment company and that <a href="https://twitter.com/search?q=%24FIL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$FIL</a> meets the definition of a security. <br><br>Interesting that the SEC investigated <a href="https://twitter.com/Filecoin?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@Filecoin</a>…</p>&mdash; Eleanor Terrett (@EleanorTerrett) <a href="https://twitter.com/EleanorTerrett/status/1658981039027437570?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">May 17, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>Grayscale promptly reiterated that FIL should not be regarded as a security. The corporation will soon provide the regulator with a brief explanation of its legal position. </p>



<p>On the other hand, Protocol Labs, the organization responsible for creating the filecoin protocol, still needs to present an official comment addressing this new development. FIL, presently ranked 33rd by market capitalization, witnessed a decrease in value when the news spread, and it is currently trading at $4.54.</p>



<p>With this action, the SEC has again shown the extent of its heightened monitoring of the environment around digital assets. Throughout this year, the regulatory body has levied fines on several American crypto enterprises suspected of participating in distributing unregistered securities. </p>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="FileCoin: Is It A Good Investment?" width="1020" height="574" src="https://www.youtube.com/embed/CfRK0U3INF0?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
</div></figure>



<p>Even though the SEC does not consider all digital assets securities, the Howey test remains an essential benchmark. If investors contribute money to benefit from the efforts of a venture, then that asset is considered an &#8220;investment contract&#8221; under this definition.</p>



<p>The moves taken by the SEC indicate that the bitcoin business has a rising need for regulatory certainty. As talks about categorizing and managing digital assets unfold worldwide, market players and industry stakeholders anxiously await additional developments.</p>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            Read more:
        </span>

    
    
        <a href="https://crypto.news/south-korean-regulatory-body-gives-security-token-guidelines/" class="cn-block-related-link__link">
            South Korean regulatory body gives security token guidelines        </a>

    
</div>

SEC categorizes filecoin as security; Grayscale faces regulatory challenge

crypto.news

Other articles published on May 18, 2023

Voyager to commence partial return of customers’ funds

Pakistan’s Crackdown on Cryptocurrency

Astrobotic, BitMEX, Bitcoin Mag Unite for Moon Mission

Trading Toolkits: Scalping Explained

Elon Musk’s latest tweet boosts DOGE price

The Wiki Finance Expo Singapore 2023 coming soon! Web 3.0, Crypto, NFT will be in focus

Join our free newsletter for daily crypto updates!