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breaking: SEC drops crypto bombshell with new guidelines shaking up the entire market! 🧨💥👀 The future of DeFi and
The SEC’s Project Crypto introduces a structured regulatory framework to differentiate securities and non-securities in the crypto space, impacting token classification under a nuanced Howey
The SEC implements new guidelines to classify cryptocurrencies under Chairman Paul’s leadership, known as Project Crypto. This initiative aims to create a structured regulatory framework distinguishing between securities and non-securities in the crypto space. The SEC applies a nuanced version of the Howey test, impacting how different cryptocurrencies are legally treated. Some tokens could still be considered investment contracts based on issuance and marketing. 🚀
The SEC’s new guidelines extend to DeFi and DAOs, potentially requiring registration with the SEC or CFTC, imposing stringent KYC requirements. This may force DeFi platforms to adopt more centralized controls, contradicting their decentralized principles. Compliance challenges await crypto startups, especially with overlapping SEC and CFTC jurisdictions, adding regulatory confusion and costs. The uncertain regulatory environment may favor larger companies able to bear compliance expenses. 💼
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