For years, the crypto industry has raised serious concerns about the lack of “regulatory clarity” in the cryptocurrency space.  The industry has challenged the Securities and Exchange Commission to issue new rules specific to cryptocurrencies and has lobbied Congress to enact legislation to address what many perceive to be regulatory gaps in this area.  The SEC’s counter has been consistent: the law is clear—the legal test outlined in the 1946 Supreme Court case SEC v. Howey, the SEC has maintained, provides the necessary clarity on the rules and regulations governing the crypto industry.

The industry finally got the legal decision it had been waiting for last July from a Southern District of New York judge in the SEC’s enforcement case against Ripple Labs.  The Ripple decision was hailed as vindication for the industry’s position that the SEC lacks the proper legal authority to regulate crypto.  Many saw that decision as the death-knell for the SEC’s crypto enforcement program.