SEC says court, not jury, should determine security status of Terra’s crypto assets
The U.S. Securities and Exchange Commission (SEC) has submitted a letter to Judge Jed Rakoff in the Terraform Labs case, arguing that the crypto assets involved should be classified as securities. The SEC proposes that the court, rather than a jury, determine whether the tokens are securities. The SEC cites the Howey Test, which assesses whether there is an investment of money with expectations of profit primarily from the efforts of others, to support its argument. The SEC claims that there is no significant dispute over the nature of the crypto asset offerings and suggests that past legal precedents support its position. The SEC's submission is part of its ongoing efforts to address the regulatory status of cryptocurrencies. The outcome of the Terraform Labs case could have implications for how other crypto assets are regulated in the U.S. Terraform Labs has also requested a summary judgment in the case and references a separate case involving alleged misrepresentations by the SEC that could impact their own case.
