SEC Guidance on Digital Assets: Clarity and Uncertainty Coexist

The SEC's latest guidance on digital assets aims to bring clarity to the crypto market, but industry experts say it falls short in some areas.

According to the new framework, tokens that are not considered securities can still be sold under investment contracts if issuers make promises of profits. However, determining when these contracts end remains a gray area.

The SEC has introduced a structured token taxonomy, categorizing digital assets into five categories using the Howey test. This includes digital commodities like Bitcoin and Ether, which are not considered securities.