Oct. 23, 2023
The SEC does risk taking a categorical approach to cryptocurrency regulation that lacks nuance and fails to account for the diversity of digital assets. Some concerns with a categorical regulatory approach: Painting all cryptocurrencies with a broad brush ignores unique characteristics of different projects. One-size-fits-all is problematic. Classifying all tokens as securities hampers innovation and forces questionable applications of securities law. Fails to differentiate between cryptocurrencies, stablecoins, utility tokens, digital commodities, etc - each may warrant tailored policy. Could restrict technologies that don't neatly fit into predefined categories. Blunt rules based on analogizing to old models like stocks may not work well for novel crypto ecosystems. Reduces flexibility to adapt regulations to rapid pace of crypto/blockchain advancement. You raise an excellent legal critique. The SEC should ensure crypto rules account for the technology's complexity and avoid simplistic categorical thinking. A tailored, nimble regulatory approach is needed rather than forcing rigid traditional frameworks. Careful consideration of each digital asset's unique properties is required. Sent with Proton Mail secure email.