Michael Selig is Counsel at Willkie Farr & Gallagher.
At the heart of every blockchain network is a “consensus mechanism,” or system of rules designed to align participants in updating the network’s state. From time to time, participants must opt in to a modification to these rules, known as “hard fork,” or else remain on a legacy version of the network.
Issuers of crypto assets have addressed the risk of inadvertently violating the registration requirement by relying on various registration exemptions when engaging in offerings of crypto assets that may constitute investment contracts. However, the SEC has sued many such issuers for alleged violations of the registration requirement under the theory that the crypto assets sold as the object of an investment contract inherit the investment contract’s security status.
Additionally, the SEC has broad authority to exempt certain activities, products and transactions from the registration requirement if necessary or appropriate in the public interest. It should use this authority to propose additional registration exemptions for crypto-native methods of distribution, such as offerings to technologically sophisticated protocol users, validator operators, play-to-earn gamers and testnet participants.
Second, the registration requirements for securities exchanges are incompatible with the way that centralized and decentralized crypto trading venues currently operate.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
As MiCA Looms, Fastex Pushes for Regulatory ComplianceWhat are the three biggest crypto trends of 2024? You could argue the top three trends are regulation, regulation, and regulation. The “Wild West” is no more. Europe’s MiCA framework will soon go into effect. Debates over crypto regulation have spilled into the U.S. presidential election.
Read more »
Watch PayPal, Visa crypto execs discuss the future of stablecoins and regulation at DC Fintech WeekDC Fintech Week is set to host a panel Wednesday morning called “Stablecoins Unshackled: New Features, Integrations and Frontiers.”
Read more »
Tether CEO Ardoino Says He Expects U.S. Will Catch Up in Crypto RegulationJesse Hamilton is CoinDesk's deputy managing editor for global policy and regulation. He doesn't hold any crypto.
Read more »
XRP holds steady above $0.51 as former SEC lawyer slams regulator for approach on crypto regulationRipple (XRP) holds steady above $0.5100 on Monday. The native token of the XRP Ledger noted no significant price change for the day.
Read more »
Johann Kerbrat, Robinhood Crypto GM: “US regulation to be late compared to EU and Asia”Johann Kerbrat is the Crypto General Manager at Robinhood, the trading app used by many US retail investors during the 2020 meme stock mania.
Read more »
Crypto Wallet Provider Issues Important Alert to Crypto Users: DetailsCrypto wallet provider Ledger has issued security alert to its users
Read more »