The Responsible Financial Innovation Act is designed to improve flexibility, innovation, transparency and consumer protections with regard to digital assets.
The communications in question preceded Hinman’s June 2018 speech in which he declared that tokens based on networks that were “sufficiently decentralized” didn’t meet the ‘Howey test.’
The thrust of SEC Chair Gary Gensler’s address may be already self-evident to many: that current laws already apply to digital assets regardless of how novel the technology may be.
Based on the legal test for determining whether something is a security or not (Howey), the SEC has a case. However, in filing its defense, Ripple Labs made an excellent point worthy of discussion.
The U.S. regulator said the offering of LBRY, whose business focuses on distribution and monetization of digital content without an intermediary, constituted an offering of securities under Howey test.
Ethereum 2.0 has gone live, seemingly without a thought paid to whether the network’s new system falls within the definition of securities for the purpose of the U.S. securities legislation.