Deconstructing The SEC's Cryptocurrency-Suppression Program: Part Five

Hidden Problems With the SEC's "Crypto-Security"

Introduction

This article is the fifth in a multi-part series in which we explain how the SEC has structured its anti-cryptocurrency campaign, why the SEC has over-reached its regulatory authority in attacking the creators of digital tokens and cryptocurrencies, and how to address the SEC's actions in this area.

The SEC treats a digital token, including one that is not a security in any obvious way, as if it were a security. The result is that the original sale or resale of a cryptocurrency or other related blockchain product is considered unlawful if not registered with the SEC.

This treatment is based on the fact that a digital token: