More From The SEC On When A Digital Asset Is A Security

Late last week, William Hinman, Director of the SEC's Division of Corporation Finance, speaking at a Yahoo Finance Summit, discussed whether a digital asset that was a security when it was originally issued could ever be resold in a manner that does not constitute the offer and sale of a security. See the text of the speech here. To the relief of many in the digital community, Hinman concluded that in cases "where there is no longer any central enterprise being invested in or where the digital asset is sold only to be used to purchase a good or service available through the network on which it was created," the digital asset may, depending on the circumstances, cease to be a security.