The American Securities and Exchange (SEC) commission has taken a surprising turn in its approach to the regulation of cryptography. On February 27, the finance division of dry businesses published directives indicating that the same – digital assets inspired by Internet trends – are generally not classified as titles. This change marks a gap in the aggressive application observed under former president Gary Gensler, which has an impact on the broader cryptography industry.
For years, the SEC was based on the Howey test to claim the regulatory authority on digital assets, arguing that the tokens sold on the secondary markets represented investment contracts. However, the new guidelines clarify that the same do not meet Howey’s criteria, because their value is motivated by speculative trade rather than the common investments managed by a promoter. This reasoning could extend to other digital assets, weakening the previous position of the dry against the exchanges of crypto.
This change may explain why the SEC has recently rejected several cases involving secondary market transactions and has interrupted others. Although the directives are labeled as non -binding, it indicates a change in potential policy that the courts and private litigants may consider. This decision also reduces regulatory uncertainty, strengthening that many secondary market transactions cannot fall under the jurisdiction of the dry.
Although the dry can reverse its position in the future, the protections of the regular procedure make it difficult to retroactive application. With this updated position, the agency seems to move away from its previous regulatory strategy by application, offering an essential clarity to the cryptographic industry. If this trend continues, it could reshape the regulation of digital assets in the United States, offering a more favorable environment for cryptographic innovation and adoption.
