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How the SEC "regulates" blockchains and digital tokens

The SEC defines everything from cryptocurrencies such as Bitcoin and Ethereum to digital tokens that are tracked on the blockchain as “digital assets” that may be regulated as a security. Learn more about our blockchain practice here.

SEC’s Cryptocurrency Suppression Program

The SEC has engaged in a program to require registration of digital assets as securities on the Enforcement side but refuses to permit such registration when companies attempt to register with Corporation Finance. Learn more about the SEC’s cryptocurrency suppression program here.

What Do We Do For Blockchain Clients?

Watch this short video discussing the regulatory landscape with which we assist our clients.

What About Non-Fungible Tokens?

There is no articulated difference between the types of digital assets the SEC has already attempted to suppress and Non-Fungible Tokens (NFTs). Click here to learn more about how NFTs are defined by the SEC.

How Should Companies Address This?

Running away from the SEC’s program or hoping the agency will leave a company alone long enough for its digital tokens to attain “utility” won’t work. Standing pat is not an option, unless digital asset producers want to allow the SEC to shut down a promising, nascent industry of unlimited potential or allow themselves to be driven off-shore. We share some thoughts in the video here or learn more about our blockchain practice area.

Legal FAQs answered by SECIL Law group photo featuring Janet DeCosta, Lionel Andre, and Adriaen Morse

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“SECIL” stands for what we do: Securities Enforcement Compliance Investigations & Litigation.  We help companies and individuals with sophisticated criminal and civil litigation, whistleblower disclosures, compliance and anti-corruption programs, and a range of other services.