What are the reasons why crypto is not considered a security by regulators?

3 answers

• Sosa MathewsOct 18, 2020 · 5 years ago
  Regulators do not consider cryptocurrencies as securities because they are decentralized digital assets that operate on blockchain technology. Unlike traditional securities, cryptocurrencies do not represent ownership in a company or entity. Instead, they function as a medium of exchange or store of value. The decentralized nature of cryptocurrencies also means that there is no central authority controlling or regulating them. This lack of central control and ownership structure is one of the main reasons why regulators do not classify cryptocurrencies as securities.
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• irfal nasutionMar 31, 2025 · 10 months ago
  Cryptocurrencies are not considered securities by regulators because they do not meet the criteria of a traditional security. Securities typically represent ownership in a company or entity and are subject to regulations to protect investors. However, cryptocurrencies operate on decentralized networks and are not tied to any specific company or entity. They are also not issued or backed by a central authority. As a result, regulators view cryptocurrencies as a separate asset class that falls outside the scope of traditional securities regulation.
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• KANISH KAARTHICK V M EEENov 30, 2021 · 4 years ago
  From BYDFi's perspective, cryptocurrencies are not considered securities by regulators due to their decentralized nature and lack of ownership structure. Unlike traditional securities, cryptocurrencies are not issued or controlled by a central authority. They are created and maintained through a decentralized network of computers, making them resistant to censorship and control. This decentralized nature is one of the key reasons why regulators do not classify cryptocurrencies as securities. Instead, they are seen as a new form of digital asset that operates outside the traditional securities framework.
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