Bitcoin OG and educator Dan Held has recently pointed out that certain crypto assets are more likely to avoid the ongoing SEC crackdown. Here are the key takeaways from his analysis:
1. Decentralized cryptocurrencies: Held believes that decentralized cryptocurrencies like Bitcoin and Ethereum are less likely to face regulatory scrutiny as they are not controlled by any central authority. These cryptocurrencies have a distributed network of nodes that validate transactions, making it difficult for regulators to target any specific entity.
2. Utility tokens: According to Held, utility tokens that have a clear use case and are not marketed as investment opportunities are less likely to be considered securities by the SEC. These tokens are designed to provide access to a specific product or service and are not intended to generate profits for investors.
3. Non-U.S. based projects: Held suggests that crypto projects based outside the U.S. may be less vulnerable to SEC enforcement actions. This is because the SEC’s jurisdiction is limited to U.S. companies and individuals, and it may be difficult for them to enforce regulations on foreign entities.
In summary, while the SEC crackdown on crypto assets continues, certain cryptocurrencies and tokens may be less vulnerable to regulatory scrutiny. Decentralized cryptocurrencies, utility tokens, and non-U.S. based projects may have a better chance of avoiding enforcement actions by the SEC. However, it is important to note that regulatory risks are inherent in the crypto industry and investors should always do their own research before investing in any cryptocurrency or token.