SEC Chairman agrees with Hinman’s framework to assess what digital assets are securities

In his letter to U.S. Rep. Ted Budd, U.S. Securities and Exchange Commission Chairman Jay Clayton agreed with Division of Corporate Finance Director Bill Hinman's framework to assess what digital assets are securities. According to Clayton, the distinction depends on the character of the offering and not the terminology used to describe it.

Clayton writes, “token is offered or sold as an investment contract, and therefore is an offer or sale of a security.” Whether a crypto asset is a security depends “on the facts and circumstances, including the economic realities of the transaction.”

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