SEC releases digital assets framework, more concretion still needed

04 Apr, 2019
by Alberto Arnaldo
Regulation
SEC releases digital assets framework, more concretion still needed

Many traders and crypto enthusiasts alike had been waiting for this day for over half a year. Yesterday the United States Securities and Exchange Comission (SEC) published their DLT Framework, a set of regulatory lines for digital asset issuers.

One of the most interesting remarks from the document is the explanation of when and how cryptocurrencies become into securities. This distinction is made on the basis of factors such as profit expectations, centralization, and market-making. With some clear regulations on the table, it should become easier for developers and crypto entrepreneurs to design projects which stay within the laws.

Much like yesterday’s response from the SEC’s Division of Corporation Finance, which triggered the hopes of many when, in the context of the launch of a token in a rather small company, the verdict of the regulator was an optimistic recommendation of not enforcing any actions while considering that the tokens were not securities, the latest move from the SEC has caused some debate on social media.

One of the most significant comments came from Jake Chervinsky, a lawyer who broke down in Twitter some of the most important points in the new piece of regulation. He also shared some of his opinions on the consequences that it might have attached:

Not everything was enjoyment and celebrating from Chervinsky, however, as he refers to a lack of concretion in some of the points of the newly established framework:

Chervinsky closed his thread with a mention to the SEC story which picked most of the attention yesterday, only to set in into its right context: 

Read more: SEC: enforcement against tokens "not recommended"; The SEC looking to hire lawyer with crypto expertise, they need it ASAP

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