In a public speech on Friday, one of SEC’s top officials said that staff of her agency are working on ”supplemental guidance” to support actors in determining ”whether their crypto-fundraising efforts fall under the securities laws,” reports cryptocurrencies-focused news site Coindesk.
Howey does fine – mostly
Commissioner Hester Peirce referred to what is called the Howey test – the standard method in the US to determine whether something is a security or not – saying that it generally provides clarity.
Yet she added that there is a need to tread carefully, as token offerings sometimes do not resemble traditional securities offerings. One such example is that capital from decentralized token offerings may not be truly owned or controlled by a company or person, setting it apart from traditional securities which are controlled by issuers or promoters.
She discussed pros and cons of being quick in formulating new regulation, implying drawbacks of being too hot on the trigger.
”If we act appropriately, we can enable innovation on this new frontier to proceed without compromising the objectives of our securities laws – protecting investors, facilitating capital formation, and ensuring fair, orderly, and efficient markets.”