Requiring that online digital trading agencies must register with the Securities and Exchange Commission, Bitcoin dipped below $10,000. The cryptocurrency, now valued at $9,684, was last below this marked in late February, making it the fifth time it has fallen below this mark in 2018.
The SEC stated,
“If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.”
“The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not. Many platforms refer to themselves as “exchanges,” which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange.”
This announcement comes after the SEC sent subpoenas to Initial Coin Offerings (ICOs) who were potentially “raising money for businesses that don’t even exist,” as well as violating other security laws.