Summary
TLDR: The SEC settled with ShapeShift for offering and selling securities, but did not specify which tokens are considered securities. ShapeShift agreed to pay $275,000. SEC Commissioners Peirce and Uyeda disagreed with the SEC’s action, questioning the lack of clarity in enforcement. This echoes frustrations expressed by Coinbase, which has also sought clarity from the SEC on crypto regulation. ShapeShift transitioned to a decentralized autonomous organization in 2021.
Key Points
1. The Securities and Exchange Commission settled with ShapeShift, a former crypto exchange that offered and sold some securities, resulting in a $275,000 payment to the SEC.
2. SEC Commissioners Hester Peirce and Mark Uyeda disagreed with the SEC’s action against ShapeShift, questioning the ambiguity of the enforcement actions and the lack of clarity around which crypto assets are considered securities.
3. ShapeShift transitioned to a decentralized autonomous organization (DAO) in 2021, continuing to operate as a community-owned multichain exchange while maintaining its non-custodial practices.