The United States Securities and Exchange Commission issued broad guidance towards the cryptocurrency industry on Tuesday, with SEC Chair Paul Atkins declaring that “most crypto assets” would not be considered securities.
The guidance provides distinctions for which types of assets would not meet the definition for securities, and what would make an asset meet that definition as an investment contract. Furthermore, the guidance notes that protocol mining (as on Bitcoin) and staking, along with crypto airdrops—or tokens sent to a protocol’s users and contributors—do not meet that definition.
“After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws. This is what regulatory agencies are supposed to do: draw clear lines in clear terms,” said Atkins, in a statement.
“It also acknowledges what the former administration refused to recognize—that most crypto assets are not themselves securities,” he continued. “And it reflects the reality that investment contracts can come to an end. This effort serves as an important bridge for entrepreneurs and investors as Congress works to advance bipartisan market structure legislation, which I look forward to implementing with [CFTC] Chairman Selig in the near future.”
In a statement released soon after the SEC’s own, the Commodity Futures Trading Commission (CFTC) said that it would “administer the Commodity Exchange Act consistent with the SEC’s interpretation.”
“This is a major step in the agencies’ efforts to provide greater clarity regarding the treatment of crypto assets, and complements Congressional endeavors to codify a comprehensive market structure framework into statute,” the CFTC added.
Editor’s note: This story is breaking and will be updated with additional info.
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Source: https://decrypt.co/361446/sec-most-crypto-assets-not-securities-staking-airdrops-bitcoin-mining
