SEC’s Crypto Advocate Speaks Out: “Most Tokens Aren’t Securities”

At the recent SEC Speaks event, Commissioner Hester Peirce, head of the SEC's Crypto Task Force, shed light on how the Commission views crypto assets under securities laws. She emphasized that most crypto assets, by design, do not fall under the category of securities.

Peirce pointed out that the SEC has held over 100 meetings with leaders from the crypto industry and has provided regulatory guidance to clarify the classification of digital assets. She highlighted that the industry continues to debate whether crypto tokens should be treated as securities.

“A crypto asset should not be considered a security if it doesn’t represent economic rights or interests in a business entity and is solely used for utility or consumption,” Peirce said.

She also noted that economic context plays a vital role in evaluating whether a crypto asset qualifies as a security. Peirce reiterated the Task Force’s stance against labeling meme coins as securities and stated that investment contracts could exist without requiring full securities registration—provided they meet specific conditions.

Importantly, she mentioned that the SEC may introduce exemptions for crypto airdrops, allowing them to avoid being classified as securities offerings.

Finally, Peirce urged the Commission to bring clear guidelines separating investment contracts from the crypto assets themselves, warning against relying too heavily on court rulings in such matters.

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