As we have discussed often in this space, Chairman Gary Gensler of the United States Securities and Exchange Commission has repeatedly expressed his view that most cryptocurrency tokens are unregistered securities and that, in his view, existing securities laws are clear enough for cryptocurrency firms to comply with them. The crypto industry has a different view and, among other things, has bemoaned the practice of the SEC’s labeling of certain tokens as investment contracts through…
Early posts in this blog mentioned how former U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton famously told Congress in February 2018 that “I believe every ICO I’ve seen is a security.” His successor, current SEC Chairman Gary Gensler, has said on multiple occasions (for example, here) that he believes the vast majority of digital tokens are securities. In a decision issued on November 7, 2022, U.S. District Judge Paul J. Barbadoro held that…