Hester Pierce talked about the upcoming changes that the Securities and Exchange Commission (SEC) is looking into for crypto token sales, ICOs, and ETFs.
In her speech on 8th February, during her visit to the University of Missouri School of Law, she briefed the audience about the upcoming and expected changes to the securities laws designed for crypto tokens. She said her team at SEC is working on the detailed guidelines that will help investors.
Under her proposed changes and new guidelines, investors can easily look into the laws and if their projects are in line with the SEC laws. She also claimed that SEC is shifting its focus towards crypto tokens, and want to play a major role to promote innovation alongside investor protection.
She also talked in detail about the SEC actions so far related to the crypto-backed ETF (exchange-traded fund) and the issues SEC faced. The good thing is, she was very vocal when it came to the challenges SEC is currently facing and where she believed SEC needs to change its course.
She admitted that the SEC needs to develop a new way of thinking to create space for crypto and related technologies. She also warned investors that they need to be careful with the Howey Test, a standard United States follows to rate anything as a security. She claimed that tokens might be different from traditional securities offering, and that is the challenge SEC is looking into.
This indicates that SEC may come up with new guidelines other than the Howey Test for decentralized token offerings. She also claimed that the Howey test is overly broad, clearly showing her discontent with the current guidelines that are not very specific for token offerings.
Overall, it is a piece of welcome news that SEC is looking into the more precise guidelines for crypto tokens, that can add more clarity for investors and can boost blockchain related investments.