US attorney: SEC crypto guidance still unclear
Summary
- The US Securities and Exchange Commission’s (SEC) latest digital-asset guidance has improved, but key standards remain unclear.
- The attorneys said the contractual-obligations requirement is unclear in applying the Howey Test and that the SEC does not clearly reflect the Ripple precedent for secondary-market transactions.
- They warned this could prolong confusion over whether tokens qualify as securities, and stressed that active industry input is needed to establish clear and durable regulatory standards.
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Despite improvements to the US Securities and Exchange Commission’s (SEC) latest digital-asset (cryptocurrency) guidance, criticism has emerged that key standards remain unclear.
According to crypto-focused media outlet CoinDesk on the 30th (local time), attorneys at law firm Gibson Dunn & Crutcher said in an op-ed that “the SEC is not clarifying the contractual-obligations requirement in applying the Howey Test, the standard for determining an investment contract.”
They also noted that “it still relies on fact- and circumstances-based determinations and does not clearly reflect the Ripple precedent for secondary-market transactions.”
They warned that this could prolong confusion over whether tokens should be deemed securities.
They added that active input from the industry is needed to establish clear and durable regulatory standards.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
