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.
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.
Watch a short video discussing the regulatory landscape with which we assist our clients.
There is no articulated difference between the types of digital assets the SEC has already attempted to suppress and Non-Fungible Tokens (NFTs).
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 below.
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