SEC's Power to Regulate Crypto Indirectly
Levine highlights the SEC's power to regulate cryptocurrencies through regulatory investment advisors indirectly. He explains that if a crypto exchange holding BTC pays interest on the coin, the account is considered a security subject to SEC jurisdiction.
Classification of Tokens and Interest-Bearing Accounts as Securities
Levine also discusses the SEC's categorization of tokens and interest-bearing crypto accounts as securities. He notes that the SEC argues that tokens issued to fund a crypto project's development are almost always securities, with only a few exceptions like Bitcoin and Ether.
SEC's Creativity in Regulating Crypto
Levine comments on the SEC's creativity in regulating the crypto sector despite not directly regulating cryptocurrencies. He claims the Commission has launched a comprehensive offensive to take over crypto regulation through its authority over investment advisors.
In conclusion, Levine's article provides insight into the SEC's indirect regulation of the crypto sector and its power to classify tokens and interest-bearing accounts as securities.
