US SEC: Referring to something as a "Crypto Asset Security" Does Not Mean the Token Is a Security
SEC Clarifies "Crypto Asset Securities" Terminology: Not Indicating Tokens Themselves Are Securities
ChainCatcher reports, citing The Block, that the US Securities and Exchange Commission (SEC) has been scrutinizing cryptocurrency companies engaged in "crypto asset securities" trading. However, despite explicitly using the term "securities," the SEC now clarifies that it does not imply these tokens are actually securities.
According to reports, the SEC, in a footnote to its proposed amended complaint against Binance, states that when referring to "crypto asset securities," it is not referring to the crypto assets themselves. Instead, it refers to the entire set of contracts, expectations, and understandings involved in selling such assets. They simply use the term as "shorthand."
The SEC further claims this has been their consistent stance, citing supplemental text from the case against Telegram. However, for clarity, they state they will avoid this shorthand in the Binance case and "regret any confusion caused."
