SEC Grapples with Defining Cryptocurrencies as Securities Amid Contradictions and Legal Battles
• SEC struggling to consistently define whether crypto tokens themselves are securities or if token sales are securities
• SEC made contradictory arguments in recent Coinbase and Binance hearings
• Blanket argument that tokens are securities raises issues (e.g. trading old tokens decades later)
• Context-based argument requires clear theory SEC has struggled to articulate
• Legal battles with Coinbase, Binance, etc. will likely set key precedents on crypto securities rules