SEC Backtracks: Regulatory Body Regrets Misleading Statements on Crypto Securities
Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...
The U.S. Securities and Exchange Commission (SEC) has come under intense scrutiny for its approach to regulating cryptocurrencies, particularly regarding its characterization of digital tokens as “crypto asset securities.”
The SEC recently acknowledged that its use of the term “securities” was not meant to imply that the tokens themselves are securities. This admission, outlined in a footnote of its amended complaint against Binance, has sparked criticism and raised questions about the SEC’s regulatory clarity and consistency.
The SEC’s longstanding stance has involved pursuing crypto companies for allegedly dealing in unregistered “crypto asset securities.” However, in its latest filing, the SEC clarified that the term was merely a “shorthand” for the entire context of contracts, expectations, and understandings surrounding the sales of such assets, not the assets themselves.
The agency further stated that it has always maintained this position, referencing past cases, such as the one against Telegram. Despite this, the SEC admitted it would cease using the term “crypto asset securities” in this manner going forward, expressing regret for any confusion caused by its terminology.
The SEC’s reversal emerged during its ongoing legal battle with Binance. The regulator accused the crypto exchange of multiple violations of U.S. securities laws, including the unregistered offering of what it referred to as “crypto asset securities.”
The SEC continues to expand its allegations while simultaneously retreating from its previous broad
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