SEC and CFTC declare most crypto assets are not securities, impacting market and DeFi regulation.
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Recently, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) made an important announcement regarding the status of crypto assets. According to them, most cryptocurrencies are not securities, which directly affects the legal framework and regulation of this market segment.
Regulators have introduced a new token taxonomy that outlines ways for crypto assets to exit the status of an “investment contract.” This move implies an opportunity for crypto projects to meet new criteria and avoid the stringent regulations applied to securities.
Additionally, the SEC and CFTC have indicated their focus on decentralized finance (DeFi) interfaces. This shift in regulatory efforts may indicate the regulators’ desire to strengthen control over this rapidly changing part of the crypto industry.
The cryptocurrency market could receive significant relief as a result of this announcement. Classifying assets that are not securities allows investment projects to operate with more freedom and reduces the risk associated with the need to comply with securities requirements.
Against the backdrop of global cryptocurrency regulation efforts, the SEC and CFTC’s statement stands out. Unlike Europe and Asia, where stricter control standards are being introduced, the United States may offer a more open and flexible model for crypto business.
The position of the SEC and CFTC regarding crypto assets has far-reaching consequences:
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