Standers of the dry at the inaugural round table of the crypto working group

Mark T. Uyeda, President of the SEC, Washington DC, March 21, 2025

Good afternoon and welcome to the inaugural round table of the Crypto Task Force, which will explore the complex legal problems involved in the classification of cryptographic assets under federal laws on securities.

In the wake of the 2008 financial crisis, a person or a group under the name of Satoshi Nakamoto published a white paper describing a new electronic cash system between peers called Bitcoin which helped to form a brand new group of digital assets. (1) Sept-seven years later, market participants, lawyers, academics, Crepts, are still grappling with the state of the state of the state of the state of the Crupoto and regulations. Securities laws. (2) Dry c. WJ Howey Co.(3) (known as “Howey Test ”) to cryptographic assets. (4)

Application challenges HoweyThe investment contract test is not unique to the crypto. I have a first -hand experience with her: as chief advisor to California Corporations Commisser, I supported before a California court of appeal that the offer of an unsecured deposit certificate wrapped with the separate reception of a bonus payment constituted an investment contract. (5) Although the State Court concluded that this was not the case, (6) other Federal Appeal Courts held that the State Court concluded that this was not the case, (6) Howey test. (7)

In the following years HoweyVarious appeal courses are divided on various shades and other aspects of this decision. For example, made Howey Demand the pooling of investor funds and the distribution of profits (8) of investors or is it sufficient that investors need only risks with the promoter? (9) In certain circuits, the fortune of all investors must depend on the expertise of the promoter, (10) but in other circuits, the wealth of the investor must be “linked to parties and third parties”. Similarly, the appeal courts are divided as to whether an investment contract requires after-sales efforts by the promoter or if “important pre-purchase management activities to ensure the success of the investment” is enough. (12)

The differences in opinions between the various courts are not unusual. After all, a judicial opinion is limited to the particular facts and circumstances of this case. When judicial opinions have created uncertainty for market players in the past, the Commission and its staff have intervened to provide advice.

For example, the Commission has clarified the sense of the trustee obligation of an advisor in place Howey to offers and sales of WHISKY (14) and condominium warehouse receipts, (15) among others. This approach to the use of notice and trade regulations explaining the Commission’s reflection process through versions – rather than through application measures – should have been considered to classify cryptographic assets under federal laws on securities. Today’s round table is an important first step to respond to this concern.

Thank you to the Crypto working group and the panelists for your time to prepare you for this round table. I look forward to the discussions to follow.

At the dry: it is finally spring, the commissioner of the Sec Hester M. Peirce

Thank you, interim president Uyeda and Crenshaw commissioner. I am delighted to welcome everyone in the inaugural round table of the Spring Sprint series to Crypto Clarity. Thank you to our panelists, who bring years of experience and a serious consideration of the subject at hand. It is normal that today’s panel takes place exactly two months after the acting president Uyeda announced the formation of the working group on the crypto and that DC was overflowing with signs of spring. Spring means new beginnings, and we have a new start here: a restart of the approach of the Commission to cryptographic regulation. The training of the crypto working group has given the building staff permission to work with an feasible framework for the regulation of cryptography, and the staff responded with palpable enthusiasm. The enthusiasm in this room is also palpable, so let’s take the moment and have a significant conversation today.

This room is full of people – on the panel, in the working group on the crypto, on the staff of the commission and in the public – who is ready for sprint to come. People have spoken, thought and written about the problems with which we are now fighting. The Round Table series will allow us to explore problems in collaboration. I remember a story that my brother told me recently. He invited a friend and brought him back to see a hangar on his property which was in poor repair. “It’s not worth saving, right?” He asked his friend. “Of course,” the friend who is completely practical replied: “Get your tractor and transport wood.” “But my tractor is not working at the moment,” said my brother. “Ok, let’s go.” So that day, they repaired the tractor and the hangar with impressive eagerness

Today’s panelists must operate the tractor – Additional definition questions – so that we can build the hangar – design a robust and functional regulatory framework. They are as followers as my brother and his friend, so I have great hopes for what we can accomplish today.

To do well, we must tackle certain fundamental questions about security status.

What makes something security?
Is this status permanent, or can an asset start as security and convert to non-security, or vice versa?
How does decentralization affect the analysis?
Can we translate the characteristics of a simple taxonomy which will cover the many different types of cryptographic assets that exist today and will exist in the future?

Thank you to everyone who made the round table of today possible. Lots of work began to get there. I look forward to the conversation and I am happy to return the scene to our estimated panelists and formulants, the former commissioner of the dry, Troy Paredes.

Source: dry

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