SEC seeks judicial ruling on crypto asset classification in Terraform Labs case
The U.S. Securities and Exchange Commission (SEC) has requested a judge, rather than a jury, to determine whether specific crypto currencies involved in the Terraform Labs case are classified as securities. In a Dec. 4 filing, the SEC requested the presiding judge to determine whether certain crypto assets are securities, a role traditionally reserved for a jury. The central part of the SEC’s argument rests on applying the Howey test, a longstanding benchmark for defining a security. The commission is firm in its belief that the crypto currencies involved in this case meet the criteria of an investment of money in a common enterprise, with profits expected predominantly from the efforts of others. You might also like: BlackRock investor scooped $100k in seed shares for spot BTC ETF The SEC’s filing stated, “There is no genuine dispute of material fact that Defendants’ crypto asset offerings involved an investment of money, in a common enterprise, with a...