Articles
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Is Crypto a Security? (Part VI: Practical Compliance Guide)
Read More: Is Crypto a Security? (Part VI: Practical Compliance Guide)In 2025, compliance for token issuers, exchanges, and developers is focused on proactive, transparent processes, rather than merely fulfilling legal requirements. Token issuers must ensure utility before launch, avoid misleading promotions, and utilize established securities exemptions. Exchanges must implement comprehensive token-classification frameworks and monitor communications. Developers and DAOs are advised to minimize reliance on central…
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Is Crypto a Security? (Part V: The Regulatory Landscape in 2025)
Read More: Is Crypto a Security? (Part V: The Regulatory Landscape in 2025)In 2025, U.S. digital asset regulation is characterized by fragmentation and shifting agency priorities. The SEC has shifted from aggressive enforcement to a more measured approach, emphasizing comprehensive frameworks over regulation-by-enforcement. However, dual jurisdiction with the CFTC complicates classifications of tokens as either commodities or securities, leading to regulatory uncertainty. Congress is debating various proposals…
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Is Crypto a Security? (Part IV: DeFi, Staking, Airdrops, NFTs)
Read More: Is Crypto a Security? (Part IV: DeFi, Staking, Airdrops, NFTs)Digital-asset activity has evolved far beyond simple token sales. Today, many of the most consequential legal questions arise not from standalone issuances, but from programmatic mechanisms—staking arrangements, liquidity pools, lending protocols, airdrop campaigns, and NFT ecosystems. These structures often challenge traditional securities analysis because value is generated through a mix of code, incentives, governance, and…
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Is Crypto a Security? (Part III: Secondary Transactions)
Read More: Is Crypto a Security? (Part III: Secondary Transactions)The Token Itself Is Not Always the Security A central development in modern crypto jurisprudence is the growing recognition that a token, standing alone as a digital object, is not automatically a security. What may constitute a security is the investment contract—the arrangement, scheme, or promises surrounding the token’s distribution—rather than the token itself. Several…
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Is Crypto a Security? (Part II: Utility Tokens)
Read More: Is Crypto a Security? (Part II: Utility Tokens)Since the inception of digital assets, “utility token” has been perceived as a non-security designation. However, the SEC has challenged this notion, treating utility as only one aspect of a broader evaluation under the Howey test. Courts assess whether purchasers rely on issuers’ efforts for token value, focusing on sales timing and issuer control. Even…
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Is Crypto a Security? (Part I: The Howey Test)
Read More: Is Crypto a Security? (Part I: The Howey Test)Following our Introduction, posted last week, today’s article is Part I of our multi-article series: Is Crypto a Security? U.S. securities law does not contain a dedicated statute for digital assets. Instead, the SEC and courts continue to apply the investment contract doctrine from SEC v. W.J. Howey Co.—a 1946 Supreme Court case involving orange…
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Is Crypto a Security? (Introduction)
Read More: Is Crypto a Security? (Introduction)The classification of crypto assets as securities remains a complex issue in 2025, despite years of regulatory scrutiny. Courts have varied in their interpretations, distinguishing between the tokens themselves and their sales context. While the SEC’s aggressive enforcement has created uncertainty within the regulatory environment, recent indications show a possible shift towards clearer guidelines and…
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Are Smart Contracts Legally Enforceable?
Read More: Are Smart Contracts Legally Enforceable?Smart contracts are often considered legal if they adhere to traditional contract principles, despite being blockchain-based. Enforcement depends on consent, consideration, and intent. Some states affirm the legality of smart contracts, while courts focus on assent rather than code alone. Challenges arise from hidden terms, liability issues, and the necessity for dispute resolution mechanisms. To…
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SEC’s Approach to Digital Assets: Key Insights from Paul Atkins
Read More: SEC’s Approach to Digital Assets: Key Insights from Paul AtkinsIn Paul Atkins’ speech, “The SEC’s Approach to Digital Assets,” he indicates a shift in the SEC’s regulatory stance, from strict enforcement to embracing digital asset innovation while prioritizing market integrity. He introduces a taxonomy for digital assets, distinguishing between securities and non-securities based on their functionality. Atkins highlights that tokens might evolve from investment…
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CFTC Emphasizes Existing Frameworks for Crypto Regulation
Read More: CFTC Emphasizes Existing Frameworks for Crypto RegulationActing CFTC Chairman Caroline D. Pham outlined a regulatory strategy for digital assets during her speech to the UK All-Party Parliamentary Group on Blockchain Technology. Emphasizing the importance of leveraging existing frameworks, she introduced initiatives like the Crypto Sprint, committed to engaging directly with market participants, and highlighted the need for coordination with international regulatory…