The SEC asserts that any investment made with an expectation of profit is considered a security.
Please take note of the SEC’s statement on page 8: “‘Investment contract’ is a broader term that goes beyond the concept of equity ownership and encompasses various transactions that, like typical securities, involve investors putting forth capital with the anticipation of gaining profits.”
However, it’s essential to clarify that not all investments with profit expectations fall under the category of securities. The SEC does not provide a reference for this assertion, as it is evidently not in line with the law. This overly expansive interpretation of “security” is precisely where the SEC’s position becomes problematic.
Recent commentary on topics related to the above article:
The differences in regulatory frameworks across jurisdictions have sparked significant challenges for the global blockchain industry. Advising on a claim in different jurisdictions demands a profound grasp of the regulatory landscape and how it dynamically applies to diverse entities & products.
The United States, in particular, presents a convoluted web of regulations, with varying inquiries springing up depending on the marketing or offering strategy.
This has ignited passionate debates and disparities in interpretation between the SEC and industry players.
Meanwhile, other jurisdictions bring their own unique twists to the regulatory scene, often flaunting tailor-made legislation or inviting fintech pioneers to frolic in regulatory sandboxes, offering unambiguous clarity and certainty for the industry.
But these divergent regulatory frameworks have thrown down the gauntlet to fintech companies operating on a global stage. They’re in an electrifying race against time and regulations, juggling multiple rulebooks and compliance requirements!
In this dynamic environment, there’s a thundering call for greater harmonization and coordination among regulatory bodies. It’s time to rally the troops, create a level playing field for fintech companies, and unleash an era of turbocharged innovation!
