The regulatory landscape for cryptocurrencies in the United States remains a hotly debated topic, with a recent public input to the SEC echoing critical concerns about how digital assets are classified. At the heart of the discussion is whether merely holding a token in the hope of price appreciation should automatically subject it to stringent federal securities laws.
Challenging the Securities Framework
A prominent voice in crypto regulation, attorney Teresa Goody Guillen, has formally argued against the notion that "passive economic interest" alone should activate securities regulation for crypto assets. Her input, submitted to the U.S. Securities and Exchange Commission (SEC), aligns with concerns previously raised by Ripple, asserting that current frameworks risk conflating mere speculation with actual investor rights. Guillen advocates for a more nuanced approach, suggesting that crypto assets should be evaluated using a comprehensive, sliding-scale set of factors rather than a single criterion.
A Proposed Path Forward: Digital Value Instruments
Further contributing to the discussion, Guillen has also unveiled a draft "Digital Asset Market Restructuring Act of 2026." This ambitious proposal seeks to introduce a new classification for crypto assets: "Digital Value Instruments." Designed for cryptocurrencies that don't neatly fit into existing categories like securities or commodities, these instruments would be identified by exhibiting at least three out of five specific characteristics. These include free transferability, passive economic interest for holders, limited individual contractual rights, systemic reliance on the protocol's sponsor, or a lack of capacity to discipline systems affecting value. The draft also outlines risk-based jurisdictions for the SEC and Commodity Futures Trading Commission (CFTC), federal preeminence, and vital safe harbor provisions aimed at fostering innovation. This proposal emerges amidst ongoing legislative debates and critical regulatory coordination meetings between the SEC and CFTC, highlighting the urgent need for a clear and consistent regulatory framework for digital assets.
