US lawyers say SEC crypto guidance remains unclear

The U.S. Securities and Exchange Commission's (SEC) latest joint guidance on cryptocurrency has improved but still leaves key regulatory standards unclear, according to lawyers from the firm Gibson, Dunn & Crutcher. In an op-ed for CoinDesk, the lawyers argued that the SEC has not clarified the contractual obligation requirements for an investment contract when applying the Howey Test, instead continuing to rely on facts and circumstances. They also noted that the guidance fails to clearly reflect the standards from the Ripple case precedent for secondary market transactions, which could lead to ongoing confusion in determining a token's security status. The lawyers emphasized the need for active industry feedback to establish clear and sustainable regulatory boundaries.