🔥 SEC Fact Sheet Summary The SEC has officially established criteria for determining whether crypto assets are securities. One-line summary: The method of selling a coin and the team's communication determine its securities status. 🟣 Existing Issues The SEC has previously judged crypto solely based on the Howey Test. Regulation was enforcement-oriented without separate standards, and the structure was such that once an asset was deemed a security, it remained subject to regulation. 🟣 Key Point of the New Interpretation The method of sale and context are more important than the token itself. Even for the same coin, whether it is a security is determined by how it was sold. 🟣 Token Classification Criteria The SEC classified crypto assets based on their function and nature, clearly stating that most are not securities. 🟠 Digital Goods: Coins whose value originates from the network itself 🟠 Digital Collectibles: NFTs, game items, etc. 🟠 Digital Utilities: Tickets, memberships, IDs/licenses 🟠 Stablecoins: Non-securities when specific requirements (GENIUS Act) are met However, as an exception, tokenized financial assets (stocks, bonds, etc.) are classified as securities. 🟣 When Does It Become a Securities? Even non-securities tokens become securities the moment the following structures are attached: 🟠 Investment Inflow 🟠 Joint Business Structure 🟠 Core Team Roles 🟠 Profit Expectations In particular, securities risk arises if there is communication that can create expectations of profit. 🟣 When Does It Discontinue Being a Security? Securities status disappears when the investment contract is no longer valid. 🟠Completion of promised development 🟠The structure for expecting profits from the team's efforts has disappeared The statement that the structure for expecting profits from the team's efforts has disappeared means, that the price is now determined by market supply and demand, not by the team. 🟣Aspects that have been clearly established The SEC has drawn a line, stating that certain activities are not fundamentally securities. 🟠Staking 🟠Mining 🟠Wrapping 🟠Some Airdrops Airdrops in the form of simple participation rewards (without invested capital) are non-securities; however, if they are accompanied by a structure that induces investment or profit expectations (where communication is particularly important), they can be interpreted as securities. 🔗 View full content