Law Firm Advocates Purpose-Based Token Classification in SEC Filing

馃 SEC's Token Identity Crisis

By Avalanche
Apr 28, 2025, 3:52 PM
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Sidley Law has submitted comments to the SEC Crypto Task Force proposing a significant shift in crypto asset classification.​ The firm advocates for:

  • Evaluating tokens based on their functional purpose rather than technical code
  • Implementing tech-neutral standards for classification
  • Categorizing assets into distinct groups (tickets, securities, access rights)

This approach contrasts with current one-size-fits-all regulations.​ The proposal aligns with recent industry discussions about the limitations of existing regulatory frameworks for crypto assets.​

Sources

Web3 rules should judge tokens by their purpose, not their code. @SidleyLaw just filed comments with the SEC Crypto Task Force, calling for tech-neutral standards that classify assets by function鈥攖ickets, securities, access rights鈥攊nstead of a one-size-fits-all approach.

Owl Explains by Ava Labs 馃敽
Owl Explains by Ava Labs 馃敽
@OwlExplains

Part of our mission to keep building clear and fair frameworks for the future of Web3 includes responding to pertinent policy. Today, @SidleyLaw shared our formal comments with the @SECGov Crypto Task Force led by Commissioner @HesterPeirce. We鈥檙e calling for smarter,

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