🇺🇸 SEC CRYPTO UPDATE:
The SEC staff just issued new FAQs clarifying how federal securities laws apply to certain crypto assets and transactions.
A few points stand out:
▫️ Promoting a crypto system’s current utility or capabilities does not automatically create an investment contract.
▫️ Once a crypto system is functional, ongoing maintenance, upgrades and efforts to grow network effects generally would not count as “essential managerial efforts.”
▫️ If a functional crypto system has no central party, statements from the issuer are unlikely to create a new investment contract.
▫️ Certain staking receipt tokens can be classified as digital tools or digital commodities depending on how they operate.
This looks like another step toward giving the crypto industry clearer rules to work with.
The big question now: how will these guidelines shape token launches, staking and crypto marketing going forward? 👀
The SEC staff just issued new FAQs clarifying how federal securities laws apply to certain crypto assets and transactions.
A few points stand out:
▫️ Promoting a crypto system’s current utility or capabilities does not automatically create an investment contract.
▫️ Once a crypto system is functional, ongoing maintenance, upgrades and efforts to grow network effects generally would not count as “essential managerial efforts.”
▫️ If a functional crypto system has no central party, statements from the issuer are unlikely to create a new investment contract.
▫️ Certain staking receipt tokens can be classified as digital tools or digital commodities depending on how they operate.
This looks like another step toward giving the crypto industry clearer rules to work with.
The big question now: how will these guidelines shape token launches, staking and crypto marketing going forward? 👀
