SEC Clarifies Its Usage of “Crypto Asset Securities,” Drawing Major Criticism From Industry Participants
The post SEC Clarifies Its Usage of “Crypto Asset Securities,” Drawing Major Criticism From Industry Participants appeared on BitcoinEthereumNews.com.
The SEC mentioned how its definition of “crypto asset securities” takes a contextual approach based on numerous factors and thus does not refer solely to assets. However, industry participants called the agency out on using the term to refer specifically to assets. In its ongoing legal suit against Binance, the US Securities and Exchange Commission clarified its usage of the term “crypto asset securities” in a footnote of a court filing. Its clarification has aroused quite the criticism as many feel the agency contradicts itself with the explanation. The regulator maintained that the term does not refer to the assets themselves but rather a shorthand for “the full set of contracts, expectations, and understandings centered on the sales and distribution of the [crypto asset].” It added that it “no longer uses the shorthand term” and “regrets any confusion it may have invited.” However, it continues to believe that the ten assets it claims Binance listed and sold remain securities due to how the exchange offers them. That includes tokens like Solana’s SOL and Polygon’s MATIC. The regulator is also going after Kraken for the same reasons, accusing it of operating “as an unregistered securities exchange, broker, dealer, and clearing agency.” Kraken recently took a stand against the SEC and the securities violations brought against it through the suit. It claimed, “The digital assets themselves cannot be the investment contracts because they carry none of the rights and obligations of a share of stock, a bond, or any other financial asset that Congress has said is subject to SEC regulation.” The SEC Has Previously Labelled Crypto as Securities Without Considering How They Were Offered Nevertheless, the SEC’s actions have left those in the crypto industry with little patience. It seems to operate through enforcement instead of working with stakeholders and the…
Filed under: News - @ September 16, 2024 7:24 am