U.S. SEC: The term ‘crypto-asset security’ does not mean that the token itself is a security

In a footnote to its amended complaint against CEX, the US SEC states that when referring to the term ‘crypto-asset securities’, it does not refer to the crypto-assets themselves, but rather to the set of contracts, expectations, and understandings surrounding the sale of those assets. In effect, the SEC is using the term as a ‘shorthand’. The SEC also claimed that it had always held this position, and mentioned that it had added a similar clarification in the case against Telegram. However, in an effort to clarify matters, the agency stated that it would avoid the use of this shorthand in future cases against CEX and that it ‘regrets any confusion’.