SEC Suit Against CZ/Binance = Attack On Blockchains And Metaverse/Gaming Platforms - Wherefore Art Thou, NFTs?

There's a lot to unpack in the SEC's 136 page Complaint against CZ and Binance, but putting aside for a moment the allegations of fraud and VPN-based circumvention of applicable regulations, a few things stood out to me on a quick review, particularly for those interested in how the SEC believes the definition of a "security" under the Howey test applies to digital assets, like NFTs.

The Complaint asserts that the BNB token is a security under U.S. law, based on the purchase of 504,000 BNB tokens out of a total of 15 billion, by 32 purchasers in the United States, along with Binance's use of BNB tokens to pay the salaries of 37 U.S.-based employees. Token issuers organized abroad should take note (as they already should know) that even a relatively few U.S.-based purchasers trigger U.S. regulation as far as the SEC is concerned.