letter<\/a> addressing the closure of U.K.-based Coinschedule, a platform that promoted the launch of over 2,500 digital tokens. Two commissioners that drafted the letter, Hester M. Peirce (also known as Crypto Mom) and Elad L. Roisman, called on the SEC to offer more regulatory clarity on which digital assets constitutes security and those that don\u2019t.<\/p>\nEarlier in the month, SEC released their order addressing Coinschedule and its platform that offered U.S.-based token projects and purchasers over 2,500 digital tokens \u201cincluding those that were offered and sold as investment contracts\u201d. According to Section 2(a)(1) of the Securities Act, investment contracts are pursuant to rules governing securities.<\/p>\n
The company was then forced to disclose their compensation for highlighting and profiling the digital assets on their platform \u2013 they declined to do so. However, Peirce and Roisman condemned the route that the SEC took in handling the case as no clear rules were formulated and the order did not name the digital assets on Coinschedule that are securities.<\/p>\n
\n\u201cWe nevertheless are disappointed that the Commission\u2019s settlement with Coinschedule did not explain which digital assets touted by Coinschedule were securities,\u201d the letter reads. \u201c[An] omission which is symptomatic of our reluctance to provide additional guidance about how to determine whether a token is being sold as part of a securities offering or which tokens are securities.\u201d<\/p>\n<\/blockquote>\n
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