SEC · CLARITY Act · Cointelegraph
US SEC follows CFTC in staff guidance for crypto
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With the failed cloture vote on the CLARITY Act, the SEC announced updates on how federal securities laws could apply to token issuers, following similar guidance from the CFTC.
Key facts
- After serving at the SEC for eight years, Commissioner Hester Peirce announced on Friday that she planned to resign on Oct. 2
- The SEC updates followed a similar move by the US Commodity Futures Trading Commission (CFTC), which offered guidance to token issuers
- SEC Chair Paul Atkins and CFTC Chair Michael Selig issued statements signaling that the agencies would address crypto regulation in the absence of laws passed by Congress
- As of Monday, US President Donald Trump had not announced any potential replacements for Peirce or the two remaining Democratic SEC seats
Summary
The US Securities and Exchange Commission (SEC) updated its policies on how securities laws will apply to “certain types of crypto assets and certain transactions involving crypto assets,” following a similar move by the country’s federal commodities regulator last week. In a Friday update to the SEC’s frequently asked questions issued in March, the agency said that the latest interpretation of its rules on crypto was non-binding, had “no legal force or effect, not alter or amend applicable law, and not create any new or additional obligations for any person.” The FAQs would apply to how the SEC considers digital asset products falling under the Howey test for investment contracts.
The regulator issued similar guidance for crypto networks, saying that a system that was “functional, services to secure, maintain, improve, or enhance such a system or its functionality, or to facilitate network effects” would not necessarily satisfy the agency’s Howey test.