SEC Explains 'Crypto Asset Securities' Term, Clarifies Token Status
CryptoNewsTerminal Staff13 Sep, 2024
SEC Explains 'Crypto Asset Securities' Term, Clarifies Token Status
The US Securities and Exchange Commission (SEC) has clarified its use of the term "Crypto Asset Securities" in its Binance lawsuit. While the term was initially used to describe certain digital assets, the SEC has now stated that it does not imply that these assets are themselves securities. The clarification came in an amended version of the SEC's complaint in the Binance case. The agency specified that the term "Crypto Asset Securities" refers to the entire arrangement for the sale of the asset, not the crypto itself. "As reflected in our Telegram litigation, we have consistently taken the position that these arrangements are not securities," the SEC stated. "However, to provide greater clarity going forward, we will not use this term in the Binance litigation." The SEC's clarification is significant because it provides guidance to market participants on how the agency views digital assets. It also highlights the SEC's ongoing efforts to regulate the cryptocurrency market.
