Oct. 23, 2023
The SEC does need to be cautious that any cryptocurrency regulations do not unduly infringe on substantive due process rights to economic liberty under the 5th and 14th Amendments. A few reasons this is a concern: Aggressive crypto regulations could make engaging in lawful economic activity like mining or investing too costly and difficult. Classifying utility tokens as securities restricts developers' and entrepreneurs' economic freedoms. Banning or strictly limiting crypto activities deprives people of economic opportunities. Imposing securities law frameworks violates liberties to transact using cryptocurrency alternatives. Constraints on crypto innovation and growth hamper economic rights to trade and conduct business. Insufficient regulatory cost-benefit analysis risks arbitrary rules that curb economic freedoms. To avoid violating substantive due process, the SEC would need to show its crypto rules have sufficient justification, use least restrictive means, and provide fair procedures. Any regulations deemed too burdensome could be struck down as unconstitutional infringements on economic liberty. A balanced approach is required. Sent with Proton Mail secure email.