Summary
- It noted that despite improvements to the U.S. Securities and Exchange Commission’s (SEC) latest digital asset (cryptocurrency) guidance, key standards remain unclear.
- Attorneys at Gibson Dunn & Crutcher said the Howey test, contractual obligation requirement, secondary-market transactions, and Ripple ruling standards are not being clearly reflected.
- They stressed that confusion over whether tokens qualify as securities could persist, and that the industry should actively submit feedback to help establish clear and durable regulatory standards.
Forecast Trend Report by Period
Concerns have been raised that the U.S. Securities and Exchange Commission’s (SEC) latest guidance on digital assets (cryptocurrencies) still leaves key standards unclear, despite improvements.
According to CoinDesk, a digital-asset-focused media outlet, attorneys at the law firm Gibson Dunn & Crutcher said in an op-ed that “the SEC is failing to clarify the requirement for contractual obligations in applying the Howey test, the standard for determining an investment contract.”
They also noted that “the agency still relies on fact- and circumstance-based assessments and does not clearly reflect the Ripple ruling’s standards for secondary-market transactions.”
They warned that this could prolong confusion over whether tokens should be deemed securities.
They added that the industry needs to actively submit feedback to help establish clear and durable regulatory standards.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
