Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Do you like this article?
Share it with your friends!
Chairman of the United States Securities and Exchange Commission Paul Atkins explained how the The agency plans to approach the supervision of digital assets while Congress reviews new market structure proposals.
Speaking at the Federal Reserve Bank of Philadelphia, Atkins described as the commission intends strengthen parts of its rules under its “Project Crypto” effort..
He said the agency is working towards a clearer system to classify different types of tokens so that companies and investors can better understand how the rules apply.
do you know
Want to get smarter and richer with crypto?
Subscribe – We post new crypto explainer videos every week!
How do cryptocurrency exchanges work? (Easily explained!)
A key part of this effort is establish a “token taxonomy”. Atkins noted that this work relies on the Howey test, which the SEC uses to decide when something works as a security.
He highlighted the point that “investment contracts can end”.
He pointed to the remarks of “Commissioner Hester Peirce” on this topic. Peirce argued that a token launch may involve an investment contract at first, but the conditions may change over time. Atkins added:
Once the investment contract can be understood to have run its course, the token can continue to trade, but those trades are no longer “securities transactions”.
Atkins also said that digital goods, collections, tools, and network tokens would not be considered securities if no investment contract exists. However, “Tokenized securities” remain under the authority of the SEC.
He noted that Congress is considering changes that could allow a more flexible bidding process for some crypto projects.
Recently, the Agriculture Committee of the United States Senate shared a new draft proposal to establish clearer rules to regulate cryptocurrency markets. What does the proposal cover? Read the full story.
