As Congress looks at regulating crypto, the major question appears to be whether it is a security or commodity. William Powers, congressional ethics and political law partner at Nossaman LLP, explains Congress’ and the executive branch’s own ethics laws with respect to the question.
The Responsible Financial Innovation Act introduced on Jun 7, 2022 includes a comprehensive regulatory framework for digital assets and seeks to provide clarity in how digital assets, such as cryptocurrencies, are treated under US securities law. The lynchpin of the bill is the codification of the US Supreme Court’s decades-old standard for determining when a financial offering is a “security,” i.e., the Howey test.
If cryptocurrency is a “security,” then crypto-companies issuing them must comply with Securities and Exchange Commission rules for registration and reporting—failure to do so can lead to significant penalties, such as the $100 million SEC fine. issued by the SEC in 2021.
However, many in the...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...