August 4, 2022

New CFTC Bill Could Overrule SEC but Leaves Fate of Many Crypto Tokens Unresolved (Blockworks)

The SEC has tried for years to classify crypto tokens — with little movement. Now, the Senate wants to take a crack at it. The move is legally sound, experts say, but there’s no guarantee it will succeed. “You wouldn’t think it, but agencies are aggressive about trying to get jurisdiction,” said Grant Fondo, co-chair of Goodwin’s Digital Currency & Blockchain Technology practice and a former federal prosecutor. “It can lead to agencies firing off a bunch of subpoenas or informal requests to get information…and it is a real burden to companies when they get these things, particularly if you’re getting it from two or three agencies about the same product.” “We’ve been looking at some of the underlying token projects to see if we can kind of garner any trends, and it really seems to be pretty all over the map,” said Meghan Spillane, a partner in Goodwin's Complex Litigation & Dispute Resolution practice. Read the Blockworks article here.