a16z crypto general counsel: SEC's current regulatory approach is not working

The U.S. Securities and Exchange Commission (SEC) recently held its first crypto working group roundtable at its Washington headquarters to discuss the long-standing core question - what makes an asset a security. The meeting marks a notable shift in the SEC’s approach to regulating the cryptocurrency industry, with years of what some crypto advocates have called a “regulation through enforcement” model potentially coming to an end. a16z crypto general counsel Miles Jennings said the SEC’s past regulatory approach has failed to achieve its three main goals: investor protection, capital formation, and market efficiency. He believes the current approach is "clearly not working" and must be improved. Rodrigo Seira, special counsel at Cooley LLP, suggested that the intent to purchase an asset does not automatically make it a security. He cited the example of buying art to illustrate that investment intentions should not directly trigger securities regulation.