Is Cryptocurrency Like Stocks and Bonds? Courts Move Closer to an Answer.
Briefly

The legal battles between the US Securities and Exchange Commission (SEC) and the crypto industry are moving closer to a resolution as federal judges begin weighing in on a series of lawsuits. The outcome of these cases, particularly the lawsuits against Coinbase and Binance, will have a significant impact on the regulatory framework for digital currencies in the US. The SEC claims that crypto companies are operating as unregulated securities businesses, while the industry argues that traditional Wall Street laws should not apply to digital currencies. The dispute leaves the crypto industry in a legal gray zone with an uncertain future.
The court fights intensified over the last 18 months, as the Securities and Exchange Commission brought enforcement lawsuits claiming that crypto companies were operating as unregulated securities businesses.
The legal battles between the SEC and crypto companies have been ongoing due to the application of the Howey Test, a legal analysis that determines when a financial product becomes subject to the same strict rules as stocks and bonds. The collision between the crypto industry and existing securities regulations has created uncertainty and a need for clarity in the US. The outcome of the lawsuits against Coinbase and Binance will be pivotal in determining whether the crypto industry can continue growing in the United States.
The crypto industry has fought back, leaving it in a legal gray zone with an uncertain future in the United States.
Read at www.nytimes.com
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