“We do not believe the SEC has provided clarity on which tokens are considered securities and which are not.”
The chasm between the crypto-space and US regulators is as wide as it has ever been. While the crypto-community has long sought clarification from regulators, the latter have historically been slow to act. This has prompted market observers to emphasize the “need for experts to collaborate with policymakers” once more.
During a recent interview, Perianne Boring, Founder and President of the Chamber of Digital Commerce, addressed the issue. The SEC, according to the executive, has failed to provide clarity, despite Chair Gary Gensler’s recent claim that regulators’ stance has been “quite clear.”
This lack of clarity is on display right now, with the official stating,
“There are a number of companies that are in sub-litigation and have been in litigation with the SEC, and the Chamber is involved in that process as a friend of the court.”
Meanwhile, the lack of guidelines has compelled the United States Congress to intervene. Another option for addressing this issue is for Congress to pass a new law that would provide much-needed clarity to the crypto-industry.
This may appear to be a simple procedure, but it is not. Several bills, such as the Token Taxonomy Act and the Securities Clarity Act, are currently circulating. However, according to Boring, only 2% of all legislation becomes law. As a result, it appears that there is still a long way to go. In the short term, the Ripple v. SEC case may provide the best opportunity to gain insight into regulators’ definitions of securities and tokens.
Boring, on the other hand, believes Congressman Tom Emmer’s proposed Security Clarity Act could be the “silver bullet.” It “defines when a token is a security and when it is not,” she explained.
However, challenges remain in getting this legislation clear because there is no clarity on how the bill’s legislative process would look.