Decades of legal precedent on what constitutes an “investment contract” or “note” under our securities laws also provides ample guidance to the industry, as well as the sophisticated securities law bar. It’s not a matter of a lack of guidance but more that the existing guidance may not be what many market participants want to hear.
There is also a narrative that the SEC is engaged in “regulation by enforcement.” But I see something different. The laws are well-established, and the cases brought to date have clear applications, as has been apparent in court rulings on these issues. This is not regulation by enforcement, but enforcement of our securities laws as Congress intended.
Source: Speech by SEC Commissioner Jaime Lizárraga — Digital Assets: Putting Investors First
