SEC: Won't change definition of security to include cryptocurrencies

Speaking live on CNBC, Jay Clayton, the U.S. Securities and Exchange Commission Chairman, said that they would not make any changes to the traditional definition of a security to make an exception for cryptocurrencies.

"Cryptocurrencies: These are replacements for sovereign currencies, replace the dollar, the euro, the yen with bitcoin. That type of currency is not a security," Clayton explained.

Commenting on the classification of digital assets, "a token, where I give you my money, and you go off and make a venture, and in return for giving you my money I say 'you can get a return' that is a security, and we regulate that. We regulate the offering of that security and regulate the trading of that security," he said.

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