SEC Commissioner Pierce admits that "even the securities lawyers whom many of these entrepreneurs cannot afford are struggling to apply the [Howey] test....Enforcement actions ought not to be the means by which we tell the marketplace what we are thinking."
She is 100% on point.
She is 100% on point.
For reference, her speech is here: sec.gov/news/speech/sp…
Sure, @HesterPeirce's speeches do not necessarily reflect the thinking of everyone at the SEC, but she has one of the five votes over enforcement decisions carried out by the Commission.
Sure, @HesterPeirce's speeches do not necessarily reflect the thinking of everyone at the SEC, but she has one of the five votes over enforcement decisions carried out by the Commission.
The Howey test for determining whether something is a security is cited by regulators and lawmakers as if we expect every crypto-entrepreneur to know what it is & how courts and the Commission have applied it over the years.
That really shouldn't be the expectation.
That really shouldn't be the expectation.
The Howey Test isn’t a legal precedent anyone can understand and apply from a single paragraph in a reddit post/article. Securities litigation and transactions are one of the most complex areas of law, and both seasoned attorneys and regulators themselves can often get wrong.
Law has always been behind the pace of technology, which I don’t necessarily think is a bad thing. Where there is room for startups to fail through trial and error, the failure of a reasonable law or ruling can negatively impact society at large for decades to come.
But I do think that there is an information asymmetry problem.
Anyway, more of my rambles here: messari.substack.com/p/ghosts-of-re…
Anyway, more of my rambles here: messari.substack.com/p/ghosts-of-re…
