The SEC Proposes "Token Safe Harbor" Framework to Determine Whether a Cryptocurrency is a Security
BlockBeats News, November 12th, U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins outlined his crypto "Token Classification Framework" plan to clearly distinguish which cryptocurrencies are considered securities, while the SEC is advancing digital asset regulation in a new way.
Paul Atkins stated that the framework will be based on the Howey Test, which the SEC often refers to in order to determine whether an asset constitutes an investment contract and is therefore considered a security. Paul Atkins then added that cryptocurrencies can be part of an investment contract, but that does not mean they will always be classified as such.
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