Marco Santori, the President and Chief Legal Officer of Blockchain, spoke about the recent framework released by the United States Securities and Exchange Commission [SEC] during an interview with Laura Shin for Unchained Podcast.
The interview began with Shin asking Santori about the things that have become clear with the release of the guidelines. Santori stated that the commission filled in some gaps and reconfirmed some of their “thinking that [they’ve] heard in the past”. However, he stated that the regulatory body gave out very little new information in the framework.
“[…] But, it does not mean that we didn’t learn anything. In fact, I think we did learn quite a bit. In terms of the no-action letter, probably not all that useful for most crypto entrepreneurs.”
This was followed by Santori stating that in terms of guidance, the commission only summarised their previous stance on the Howey Test. He added that it also mentioned a little bit about the Director of Division of Corporation Finance William Hinman’s brief speech on the test, and some of the factors that made a token similar to a security and less likely to be a security. Santori went on to state,
“[…] So, SEC finally put much of that in writing, adding some, removing some of the bits, but they did a little more than that. They also gave fact pattern at the very end; so, look here’s one fact pattern that we know at least for sure that within this sort of circumscribed set of facts, this thing would not be a security in our minds.”
The Chief Legal Officer further stated that the SEC mainly stressed on Director Himan’s speech, where he stated that the status of a token could be shifted from being a security to a non-security. However, the commission failed to explain the circumstances that make a token a non-security. He said,
“They reconfirmed that [shit from security to non-security] here and they gave a few different facts […] in favor of security status and against security status. So those are the little bit of meats on the bones there.”
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