In hopes of helping society grow and to allow everyone gain more insight into exactly how crypto tokens will be viewed in the eyes of the law, the U.S. Securities and Exchange Commission (SEC) has released a regulatory guidance document that outlines how and when cryptocurrency should be used and what certain tokens will be classified as, though mainly in reference to securities.
The first to state that regulators were working to develop new guidance for crypto tokens was SEC Director of Corporation Finance, William Hinman, in November of 2018. Others have also made it clear that this was a solid plan for the future of society including Valerie Szczepanik, FinHub head, and Commissioner Hester Peirce.
Hinman revealed that the guidance would be in “plain English” and allow anyone invested in crypto tokens to seamlessly be able to determine its qualification as a security offering. The document includes a plethora of useful information as well as examples of both tokens and networks that could be considered securities under the law, and a few examples of those that do not.