Quick Breakdown
- A SEC public comment argues that crypto speculation alone should not trigger securities laws.
- A new draft bill proposes classifying some tokens as “Digital Value Instruments”.
- Regulatory discussions intensify ahead of a joint SEC–CFTC coordination meeting.
A public submission to the US Securities and Exchange Commission’s Crypto Task Force has reignited debate over how cryptocurrencies should be regulated, echoing arguments previously raised by Ripple as lawmakers weigh the proposed CLARITY Act.
The response was authored by digital asset regulation attorney Teresa Goody Guillen and published Monday on the SEC’s website as part of its public comment process. Guillen argued that merely holding a cryptocurrency in anticipation of price appreciation should not automatically subject the asset to federal securities laws.
Sliding-scale approach proposed for crypto classification
Guillen aligned herself with Ripple’s earlier position, warning against frameworks that treat “passive economic interest” as a standalone trigger for securities regulation. She noted that speculation alone does not grant holders traditional investment rights, such as profit-sharing or governance control.
Instead, she proposed that digital assets be evaluated using a broader, multi-factor analysis applied on a sliding scale, rather than rigid legal definitions. Guillen emphasized that her comments were offered as policy input and do not represent official SEC guidance.
Her submission responds directly to Ripple’s January 9 letter, which criticized the current market structure draft bill for relying too heavily on concepts like decentralization as legal benchmarks. Ripple also urged lawmakers to avoid conflating token speculation with investor protections designed for securities markets.
New draft law suggests “Digital Value Instruments”
Separately, Guillen released a discussion draft for the proposed Digital Markets Restructure Act of 2026, though the document has not been endorsed by leadership at either the SEC or the Commodity Futures Trading Commission (CFTC).
The draft introduces a new classification, Digital Value Instruments for cryptocurrencies that do not clearly fall under existing securities or commodities frameworks. Under the proposal, assets would qualify if they display at least three out of five defined characteristics, including free transferability, limited contractual rights for holders, or dependence on a protocol sponsor without meaningful governance control.
The comments were published ahead of a joint SEC–CFTC meeting scheduled for Thursday, where regulators will discuss digital asset coordination. The event, initially planned for Tuesday, was postponed due to scheduling disruptions and will include a fireside chat with SEC Chair Paul Atkins and CFTC Chair Mike Selig.
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