Let the Definition of Digital Commodities Be Included in Binding Regulations!
At the heart of the debate is the SEC’s approach to classifying crypto assets, published in March. Six organizations argue that this approach should be incorporated into formal regulatory provisions, rather than merely being included in explanatory texts. The tokens involved include Chainlink, Hedera, Aptos, Avalanche, Stellar, and Cardano.
In their letter, these six companies and foundations argue that the SEC should incorporate the crypto classification criteria it published in March into official rules to reduce regulatory uncertainty.
The basis of the organizations’ request is, in particular, the view that a crypto asset being the subject of an investment contract should not, in itself, transform that asset into a security. The aim here is to clarify that even if a digital commodity is the subject of an investment contract, the asset itself is not a security.
The group also wants the SEC to clearly state that a new rule will not alter existing cryptocurrency classifications or change the scope of oversight or the boundaries between the SEC and the Commodity Futures Trading Commission.
It is not yet clear whether the SEC will accept these requests. Changes to the final regulation could affect the operations of digital asset projects in the US and the regulatory framework of the crypto market.
*This is not investment advice.
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