Summary
SEC argues that most digital assets are securities and should be registered under the law. Coinbase and others in the industry believe once assets hit secondary markets, they are no longer under SEC jurisdiction. Resolving this dispute is crucial for the U.S. crypto sector.
Key Points
1. Investment contracts in the crypto sector are considered securities regulated by the SEC, and should be properly registered under the law if they qualify.
2. The SEC argues that the majority of digital assets are securities, while Coinbase and others in the industry believe that once a token is traded on secondary markets and disconnected from the issuing business, it is no longer under the SEC’s jurisdiction.
3. Resolving the dispute between the SEC and industry players regarding the classification of digital assets as securities is crucial for the U.S. crypto sector.