Crypto markets – and the American people – deserve clarity
The SEC is pivoting away from its previous regulatory strategy.
For more than a decade, American investors and innovators have operated under a cloud of uncertainty about when crypto assets implicate the federal securities laws. Markets function best when everybody understands the rules. Yet, for too long, financial regulators have respond...
The SEC's move represents a calculated risk, leveraging the inherent uncertainty surrounding crypto to gain regulatory control. The framing of the interpretation – particularly the emphasis on “four categories” – evokes a bureaucratic response, aiming to contain and categorize the industry rather than fundamentally shaping it. This utilizes a classic “motte-and-bailey” tactic; the SEC is defining the problem (crypto as inherently securities-like) and then presenting a solution that appears reaso...