I. Overview
On March 17, the Securities and Exchange Commission (SEC or Commission) issued an interpretation on the application of the federal securities laws to crypto assets, with the Commodities Futures Trading Commission (CFTC) providing related guidance on certain aspects of the Interpretation.1 The Interpretation sets forth a framework addressing crypto asset classification, mining, staking, wrapping, and airdrops. The Commission provided its interpretation of how the Howey2 test applies to crypto assets and transactions involving crypto assets.3 Although the Interpretation reflects a significant shift in the SEC’s historic approach to crypto assets, it is not a binding, formal rulemaking. However, as a Commission…
