SEC Corp Fin Director Speaks on Applying Securities Laws to Digital Assets

July 16, 2018

Speaking at the Yahoo Finance All Markets Summit last month in San Francisco, CA, Securities and Exchange Commission (“SEC”) Division of Corporation Finance (“Corp Fin”) director William Hinman discussed how federal securities laws are applied to digital assets. Hinman argued that securities laws apply to digital asset transactions considering that funds are raised under the assumption that promoters will develop their system and that investors expect a return on the instrument.

He also noted several factors to consider when determining whether a digital asset is a security. One factor involves considering whether a third party pushes the expectation of a return.

Visit the SEC website for the full transcript of Hinman’s speech.