The U.S. Securities and Exchange Commission has made significant progress over the past 18 months in developing a workable framework for crypto under the federal securities laws.  A key milestone was the Commission’s March 2026 interpretation (the “Interpretation”) of how the definition of “security” applies to crypto assets and related transactions.  The Interpretation divides crypto […]

One of the many challenging issues the SEC will need to navigate in developing a workable regulatory framework for crypto assets is how to apply the broker-dealer “Net Capital Rule.”   This seemingly narrow, esoteric topic will likely play a role in shaping crypto market structure under the emerging U.S. framework—even if new registration categories […]

One of the more significant rulemaking initiatives under Chair Gensler’s SEC that has not yet been finalized is a proposal to expand the universe of what constitutes an “exchange” for regulatory categorization purposes.    This rulemaking has broader relevance than may at first be apparent to market participants, as its implications extend beyond the world […]

The SEC Chair has stated that in his view, the “vast majority” of cryptoassets are securities, meaning that these products—and market participants—are subject to the federal securities laws and SEC rules.[1]  This poses a conundrum: Compliance with aspects of the securities laws and existing SEC rules is not attainable for cryptoasset securities,[2] absent further regulatory or […]