U.S. SEC Declares Filecoin (FIL) to be Securities Grayscale Announces

Deemed as securities by SEC

Crypto asset (virtual currency) management company Grayscale announced on the 17th that the U.S. Securities and Exchange Commission (SEC) has determined that Filecoin (FIL) falls under the category of securities.

The company reportedly filed an application for registration of a Filecoin investment trust with the SEC in April. In an update on this filing, the SEC has requested that the registration application be immediately withdrawn because Filecoin is a securities.

Meanwhile, Grayscale explained that it does not believe Filecoin is a security and plans to contact the SEC soon. It is not possible at this time to predict how the SEC will respond.

Specifically, Grayscale has applied for a Filecoin mutual fund in accordance with the Securities Exchange Act of 1934. In this regard, the SEC noted that the Investment Company Act of 1940 may apply.

The company said it could reapply under the Investment Companies Act of 1940 or give up registration of the Filecon mutual fund.

What is Filecoin

What is attracting attention in the virtual currency area this time is that the SEC has decided that Filecoin is a securities. At the time of writing this article, the price of Filecoin was $4.53, up 2.2% compared to the 24-hour period, but after the grayscale announcement, it temporarily dropped about 3% (CoinGecko).

Filecoin is a virtual currency used in a distributed storage network. It is used for payment of storage usage fees, blockchain rewards, governance, etc.

The project started in 2014 and has a long history, attracting a lot of attention from investors. In 2017, they conducted an ICO (initial coin offering) and raised $200 million (approximately ¥27 billion at the current rate).

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