SEC's Classification of Digital Assets Faces Criticism and Calls for Restriction

Troy Paredes, a former commissioner at the SEC, believes that the regulator may be overstepping its boundaries when it comes to classifying digital assets as securities. Speaking at a conference, Paredes stated that the SEC has taken a broad view of what constitutes a security under the Howey test. He also highlighted the need for the SEC to address jurisdictional questions regarding digital assets. Paredes further criticized the SEC's approach of labeling tokens as securities without considering how to adapt the regulatory framework for digital assets, causing uncertainty for firms trying to comply. The SEC's actions have drawn criticism and prompted lawmakers to seek restrictions on the commission's authority over digital assets.

Sources :

- CoinTelegraph