SEC clarifies wrapped Bitcoin status as non-security deposit receipt

  • SEC clarified wrapped Bitcoin and crypto receipts’ status as non-security deposit receipts.
  • Receipts confer ownership without providing additional yield.
  • Custodians are prohibited from lending the underlying funds.

The SEC (U.S. securities regulator) clarified that wrapped Bitcoin and related crypto receipts can be treated as non-security deposit receipts. The receipt conveys ownership but provides no additional yield, and custodians are barred from lending the underlying funds. Wrapped Bitcoin is a tokenized representation of Bitcoin used in other blockchain environments.

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