Regulation· ★★★★· bullish·

SEC clarifies when a wrapped bitcoin token is not a security

  • —SEC: a wrapped token's status hinges on how the deposited asset is structured and used
  • —A token is not a security absent reliance on the issuer's managerial efforts
  • —The guidance extends the SEC's recent string of crypto-related clarifications
Why it matters: It reduces regulatory uncertainty for DeFi protocols and issuers of wrapped tokens such as wBTC and similar products.
Source: CriptoNoticias