⚖️ SEC CLARIFIES WHEN WRAPPED BITCOIN CAN FALL OUTSIDE SECURITIES LAWS.
• The SEC says certain redeemable wrapped crypto assets, including wrapped Bitcoin, can be treated as non-security receipts when they represent a 1:1 claim on an underlying non-security crypto asset without adding yield, profit opportunities or other financial benefits.
• Under the framework, holders must effectively own the deposited asset through the wrapped token, with the ability to redeem it 1:1. The underlying crypto must also remain fully backed and locked up by the provider.
• The deposited assets cannot be lent, pledged, rehypothecated, transferred or otherwise used by the wrapped-token provider under the conditions described by the SEC.
• The interpretation could provide clearer treatment for some wrapped BTC and cross-chain products, but the outcome depends on the specific structure and conditions. Wrapped tokens involving securities or assets subject to an investment contract may receive different treatment.
$SOL
#sol $WBTC
#BTC
• The SEC says certain redeemable wrapped crypto assets, including wrapped Bitcoin, can be treated as non-security receipts when they represent a 1:1 claim on an underlying non-security crypto asset without adding yield, profit opportunities or other financial benefits.
• Under the framework, holders must effectively own the deposited asset through the wrapped token, with the ability to redeem it 1:1. The underlying crypto must also remain fully backed and locked up by the provider.
• The deposited assets cannot be lent, pledged, rehypothecated, transferred or otherwise used by the wrapped-token provider under the conditions described by the SEC.
• The interpretation could provide clearer treatment for some wrapped BTC and cross-chain products, but the outcome depends on the specific structure and conditions. Wrapped tokens involving securities or assets subject to an investment contract may receive different treatment.
$SOL
#sol $WBTC
#BTC
