U.S. Regulatory Expert: SEC May Redefine Cryptocurrency Characteristics, Most Tokens Could Be Classified as Commodities

BlockBeats News, February 25th. According to U.S. regulatory expert Amy Lynch, the SEC may redefine the attributes of cryptocurrency, with most tokens possibly being classified as commodities, thus falling outside the SEC's jurisdiction.

The SEC's lawsuit against Ripple Labs over the issuance of XRP tokens has become a key indicator. Previously, the SEC accused Ripple of issuing unregistered securities. Importantly, this case is seen as a legal precedent that would classify most cryptocurrencies as SEC-regulated securities. The case has been progressing slowly, with the SEC appealing a previous court ruling in October last year. As regulatory attitudes shift, whether the SEC will continue its appeal becomes the focus.

More broadly, the enforcement of securities laws may also be "severely restricted," partly due to the impact of the Department of Government Efficiency (DOGE). Lynch speculates that DOGE may scrutinize the SEC's internal operations more closely and attempt to streamline the agency.

"I think they will take the time to develop their own plan," Lynch said of the SEC, "and pending cases based on former employees' positions will ultimately be dismissed."

Lynch warns that uncertainty in the legislative process may lead to short-term selling pressure, but in the long run, it will solidify the foundation of value. Lynch points out that there have been previous instances where cryptocurrency prices have fallen due to changes in the legal framework. (Jin Shi)