Potential Impact Of The SEC's Rulemaking Agenda On Crypto

The current SEC administration has expressed the view that most crypto assets are offered and sold as securities and has proposed several rules that address "digital asset securities" or "crypto asset securities." In this article, the authors address how certain SEC rule proposals could impact existing crypto market participants if the rules are adopted as proposed and the SEC's view that most crypto assets are offered and sold as securities prevails.

Under Chair Gary Gensler, the Securities and Exchange Commission ("SEC") is engaging in an unprecedentedly active rulemaking agenda¹ that includes several rules that address "crypto asset securities." The inclusion of crypto asset securities in the SEC's rulemaking agenda is notable because of the continuing disagreement between the SEC, the crypto industry, and other financial regulators about whether most crypto assets are offered and sold as securities.