U
GOING TO CARVE OUT SOME 
EXCEPTIONS AND WHEN ARE YOU 
GOING TO MAKE A CLEAR RULING AND
DECISION ON THIS
>> THERE'S A LOT IN THAT AREA.
LET ME START WITH THE TECH
Y
TECHNOLOGY
INCREDIBLE PROGRESS.
IT CAN DRIVE IN THE FINANCIAL 
MARKETS BUT IN A LOT OF MARKETS.
FINE
TWO AREAS IN THE FINANCIAL
MARKETS WERE DISTRIBUTOR LEDGER 
TECHNOLOGY HAS COME TO THE
FLOOR, CRYPTO CURRENCIES
THESE ARE REPLACEMENTS FOR
SOVEREIGN CURRENCIES
REPLACE THE DOLLAR, YEN, EURO 
WITH BITCOIN
THAT TYPE OF CURRENCY IS NOT A
SECURITY
LET ME TURN TO WHAT'S A 
SECURITY
A TOKEN, A DIGITAL ASSET, WHERE 
I GIVE YOU MY MONEY AND YOU GO
OFF AND MAKE A VENTURE
YOU HAVE SOME COMPANY YOU WANT
TO START
AND IN RETURN FOR ME GIVING YOU 
MY MONEY, YOU SAY I'M GOING TO
GIVE YOU A RETURN OR YOU CAN GET
A RETURN IN THE SECONDARY MARKET
BY SELLING YOUR TOKEN TO
SOMEBODY
THAT IS A SECURITY AND WE 
REGULATE THAT.
WE REGUTE THE OFFERING OF THAT
SECURITY AND THE TRADING OF THAT
SECURITY
AND THAT'S OUR JOB AND WE'VE
BEEN DOING IT FOR A LONG TIME.
>> SO YOU'RE SAYING THE CLASSIC 
DEFINITION OF SECURITY, YOU 
INVEST IN A COMMON ENTERPRISE.
YOU SAYING THE WAY YOU LOOK AT
MOST ICOs, THEY ARE SECURITIES
>> CORRECT
>> ARE YOU PLANNING TO MAKE A 
CLEAR STATEMENT ON THAT BECAUSE 
THERE SEEMS TO BE A LOT OF
CONFUSION ABOUT WHETHER ANYBODY 
IS GOING TO GET APPROVED OR NOT.
>> BOB, I HOPE I JUST DID.
IF IT'S A SECURITY, WE'RE 
REGULATING IT.
WE'VE BEEN DOING THIS FOR A LONG
TIME
AND WE BUILT A $19 TRILLION 
ECONOMY.
A SECURITIES MARKET THAT'S THE
ENVY OF THE WORLD FOLLOWING 
THESE RULES.
IF YOU HAVE AN ICO OR A STOCK 
AND YOU WANT TO SELL IT IN
PRIVATE PLACEMENT, FOLLOW THE 
PRIVATE PLACEMENT RULES.
NO SECONDARY TRADING
YOU HAVE TO DO THAT.
IF YOU WANT TO DO AN IPO WITH A 
TOKEN, COME SEE US
FILE FINANCIAL STATEMENTS, FILE 
DISCLOSE PURP TAKE THE
RESPONSIBILITY OUR LAWS REQUIRE 
AND WE'RE HAPPY TO HELP YOU DO
THAT PUBLIC OFFERING
>> YOU SEEM TO BE SAYING THE
S.E.C. IS NOT GOING TO BE 
CHANGING THE DEFINITION OF A
SECURITY JUST TO SUIT THE ICO 
COMMUNITY.
IS THAT RIGHT?
>> I'M CERTAINLY NOT GOING TO 
SUPPORT THAT
>> LET ME MOVE ON.
WHAT ABOUT ALT COINS
THERE ARE OTHER ALT COINS OUT 
THERE.
THERE'S ETHER, RIPPLE.
IS ETHER A SECURITY?
>> I'M NOT GOING TO COMMENT ON
SPECIFIC CRYPTO ASSETS AND
WHETHER THEY ARE A SECURITY OR
ARE NOT A SECURITY
BUT YOU CAPTURED THE DEFINITION 
VERY WELL.
AM I GIVING YOU MY MONEY FOR YOU
TO GO OFF IN A VENTURE OR I'M 
RELYING ON THE -- 
>> THERE ARE LAWSUITS OVER
RIPPLE ABOUT WHETHER IT IS OR IS
NOT A SECURITY
THAT'S PARTLY ONE OF THE ISSUES 
HERE
AND, OBVIOUSLY, HOW THE S.E.C.
FEELS IS VERY IMPORTANT.
>> WE ARE NOT GOING TO DO ANY 
VIOLENCE TO THE TRADITIONAL 
DEFINITION OF A SECURITY, WHICH 
HAS WORKED WELL FOR A LONG TIME,
AND I BELIEVE WILL CONTINUE TO
WORK WELL.
>> IS IT POSSIBLE THE S.E.C.
MIGHT SAY THESE WERE SECURITIES 
AT ONE TIME AND NO LONGER ARE 
BECAUSE THEY'RE NOT CENTRALLY 
CONTROLLED, FOR EXAMPLE?
>> THAT'S A QUESTION THAT IS OUT
THERE AND, YOU KNOW, WILL BE
ANSWERED IN SPECIFIC FACTS AND
CIRCUMSTANCES.
BUT WE'VE BEEN DOING THIS A LONG
TIME AND THERE'S NO NEED TO 
CHANGE OUR FUNDAMENTAL APPROACH.
>> I COVERED ETFs FOR A LONG
TIME
A LOT OF ISSUERS ARE WAITING
WHAT CRITERIA DO YOU NEED TO
START A BITCOIN ETF.
WE HAVE A FAIRLY WELL DEVELOPED 
FUTURES BITCOIN MARKET THAT'S 
BEEN OUT SIX MONTHS NOW.
ARE YOU PLEASED WITH HOW THAT IS
GOING?
IS THE DEVELOPMENT OF THAT
MARKET SUFFICIENT TO ALLOW
BITCOIN ETFs OR ARE THERE OTHER 
CRITERIA
>> OUR DIVISION OF INVESTMENT 
MANAGEMENT HAS PUT OUT AND BEEN 
VERY CLEAR WITH THE INDUSTRY
ABOUT THE TYPES OF THINGS WE'RE 
GOING TO NEED IN ANY ASSET
CLASS.
IF WE'RE GOING TO APPROVE A 
PRODUCT.
AND ONE OF THOSE IS, IS THE 
PRICING SOMETHING PEOPLE CAN
RELY ON.
ALSO ASSET VERIFICATION.
OUR COMMUNICATION TO THE MARKET 
PLACE ON THIS HAS BEEN VERY 
CLEAR.
I'M VERY PLEASED WITH MY
COLLEAGUES A
