In a Bloomberg Law article, litigation & enforcement partners Amy Jane Longo and Helen Gugel discussed the SEC's proposal to exempt certain digital asset offerings from securities registration requirements. They also addressed the legal challenges and uncertainty the proposal could create for crypto firms looking to expand.
Amy noted that the proposal's form leaves it more open to challenge, saying "the fact that it is a rule instead of a law creates potential areas of challenge that might not otherwise have existed." She added that "for the immediate term, you can't take any comfort from the fact that the SEC is trying to make these rules uniform for issuers since there are currently a variety of state regimes."
Helen advised that firms don't necessarily need to change their current operations, explaining "to the extent firms are thinking about expanding into a new state and don't already have a license, there could be value in potentially seeing how this plays out."
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