Turf War Over Digital Assets Regulation Highlighted By SEC v. Wahi Suit

The sustained and increasing interest in trading digital assets has driven the U.S. Securities and Exchange Commission (SEC or "Commission"), led by its Chairperson (and former MIT blockchain professor) Gary Gensler, to take an aggressive approach to regulation of the asset class. While the SEC and other regulators have offered guidance and engaged in some investigative and enforcement activity, the regulation of digital assets, which have a broad spectrum of properties and characteristics, has created considerable legal and regulatory uncertainty in the space.

One critical unresolved regulatory issue is determining when a digital asset is a "security," which triggers a host of regulatory and compliance obligations for entities and individuals involved in the purchase or sale of the instrument. Other federal regulators, such as the Commodity Futures Trading Commission (CFTC), are seeking to increase their jurisdictional oversight. While legislation percolating