Helping Clients Defend Against SEC Actions
The SEC defines everything from cryptocurrencies such as Bitcoin and Ethereum to digital tokens that are tracked on the blockchain as "digital assets" that may be regulated as a security.
The SEC has engaged in a program to require registration of digital assets as securities on the Enforcement side but refuses to permit such registration when companies attempt to register with Corporation Finance.
There is no articulated difference between the types of digital assets the SEC has already attempted to suppress and Non-Fungible Tokens (NFTs).
Running away from the SEC's program or hoping the agency will leave a company alone long enough for its digital tokens to attain "utility" won't work.
Other federal agencies, such as the Commodity Futures Trading Commission (CFTC), the Department of Justice, and the Department of the Treasury, as well as the Federal Reserve, all have reservations or concerns about cryptocurrencies.