SEC Acting Chairman Instructs Staff to Review Legal Statements on Cryptocurrency Risks and Security

Odaily Planet Daily News: Mark T. Uyeda, Acting Chairman of the U.S. Securities and Exchange Commission (SEC), directed the agency's staff on Saturday to review several previously issued staff statements on cryptocurrency investments and the application of digital asset securities laws. The directive was issued pursuant to Executive Order 14192 (entitled "Promoting Prosperity through Deregulation") and in response to the recommendations of the Department of Government Efficiency (DOGE). Uyeda said the statements would be reviewed to determine whether they needed to be "modified or revoked" to align with the SEC's current priorities. Specific statements reviewed include: 2019 guidance on whether digital assets constitute securities, which involves how to assess whether digital assets are securities through the "Howey test"; 2021 statement on Bitcoin futures, which advises investors to be particularly cautious when investing in mutual funds involving the Bitcoin futures market, emphasizing the speculative nature, market manipulation risks, liquidity constraints and volatility of the market, especially in mutual funds; 2022 guidance on cryptocurrency bankruptcy events, which requires crypto companies to transparently disclose risks associated with the crypto market, emphasizing the impact on investors, including custody risks, liquidity issues, reputational damage and regulatory scrutiny. Uyeda also directed a review of a risk alert issued in February 2021 warning investors of the “unique risks” of digital asset trading, as well as a 2020 statement that Wyoming would allow state-chartered trust companies to custody digital assets. (The Block)