Novel, uncommon, or irregular devices, whatever they appear to be, are also reached if it be proved as matter of fact that they were widely offered or dealt in under terms or courses of dealing which established their character in commerce as ‘investment contracts,’ or as ‘any interest or instrument commonly known as a ‘security’.” SEC v. Supreme Court determined that “the reach of the Act does not stop with the obvious and commonplace. In determining whether a token or other digital asset is an “investment contract,” both the SEC and the courts look at the substance of the transaction, instead of its form. Supreme Court as an investment of money in a common enterprise with a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others. law, a security includes “an investment contract,” which has been defined by the U.S. The SEC generally has regulatory authority over the issuance or resale of any token or other digital asset that constitutes a security.
Those taking the latter approach will be better positioned to regulate as and when the technology evolves. There is no uniform definition of “cryptocurrency,” which is often referred to as “virtual currency,” “digital assets,” “digital tokens,” “cryptoassets” or simply “crypto.” While some jurisdictions have attempted to formulate a detailed definition for the asset class, most have wisely opted for broader, more technology-agnostic definitions. New York, which passed laws once considered restrictive, has eased restrictions for attaining a BitLicense in the hopes of luring back cryptocurrency companies that previously exited the New York market. Authorities in at least 10 other states, like Maryland and Hawaii, have issued warnings about investing in cryptocurrencies.
On the other hand, Iowa introduced a bill that would prohibit the state and political subdivisions of the state from accepting payment in the form of cryptocurrencies. Oklahoma introduced a bill authorizing cryptocurrency to be used, offered, sold, exchanged and accepted as an instrument of monetary value within its governmental agencies. state to start accepting taxes in cryptocurrency. Another state, Colorado, passed a bipartisan bill exempting cryptocurrencies from state securities regulations. The state has been praised for becoming the most crypto-friendly jurisdiction in the country. These crypto-focused banks can act in both a custodial and fiduciary capacity and are meant to allow businesses to hold digital assets safely and legally. In furtherance of this objective, Wyoming passed legislation allowing for the creation of a new type of bank or special purpose depository institution. One example, Wyoming, has been mentioned as a state seeking a broader impact on its economy. These states hope to leverage investment in the technology to stimulate local economies and improve public services. Some states have tried to promote the technology by passing very favorable regulations exempting cryptocurrencies from state securities laws and/or money transmission statutes. There have generally been two approaches to regulation at the state level.
Several state governments have proposed and/or passed laws affecting cryptocurrencies and blockchain technology, with most of the activity taking place in the legislative branch. to maintain a leading role in the development of the technology. Many Federal agencies and policymakers have praised the technology as being an important part of the U.S.’s future infrastructure and have acknowledged the need for the U.S.
While there has been significant engagement by these agencies, little formal rulemaking has occurred. At the Federal level, most of the focus has been at the administrative and agency level, including the Securities and Exchange Commission (the “ SEC”), the Commodity Futures Trading Commission (the “ CFTC”), the Federal Trade Commission and the Department of the Treasury, through the Internal Revenue Service (the “ IRS”), the Office of the Comptroller of the Currency (the “ OCC”) and the Financial Crimes Enforcement Network (“ FinCEN”). In the United States, cryptocurrencies have been the focus of much attention by both Federal and state governments.
0 kommentar(er)
