Finally, the US SEC itself admitted that crypto tokens are not a security

On Aug 19, 2023

Through a new motion, the US SEC stated that crypto assets are only computer code with no inherent value.

The United States Securities Exchange Commission (SEC) is the dominant US financial regulator. This regulatory body is a very big crypto hater, as the SEC leader Gary Gensler used his power to regulate the crypto sector forcibly with the help of traditional securities laws, even though these rules do not apply to this innovative sector.

In a new court filing, the SEC agency attached a statement to share the SEC body’s views on the nature of the crypto assets.

As per the SEC statement, all the cryptocurrencies are computer codes with no inherent value.

“The SEC does not seek appellate review of any holding relating to the fact that the underlying assets here are nothing but computer code with no inherent value,” the filing read.

A crypto news reporter called this SEC’s statement a strange thing, as it shows some changes in the SEC’s views over this innovative sector.

Interesting that even the @SECGov is accepting that digital assets themselves are not inherently securities.

However, not entirely surprising as both Judge Rakoff and Judge Torres came to this conclusion in their respective cases. pic.twitter.com/OhwyzeaJWN
— Eleanor Terrett (@EleanorTerrett) August 18, 2023

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Pro XRP supporter & crypto law firm founder John Deaton indirectly tried to explain the actual meaning of this statement passed by the SEC body through a court filing.

Deaton mentioned the XRP lawsuit, in which nearly 75,000 XRP holders showed their support for the Ripple firm via amicus brief in the case and indirectly put pressure on the court judge to identify the exact nature of the XRP coin.

I have to say there is no doubt 75K #XRPHolders are a major reason the SEC is conceding this issue. We fought to have the judge actually ✍️ that the token itself is not the security. In fact, it was the first section in our argument in the Brief. https://t.co/ann7Hah7K3 pic.twitter.com/yqodFQ1eAV
— John E Deaton (@JohnEDeaton1) August 18, 2023

So here the existence of any token doesn’t mean that it is a security token, instead, the used model of that token tells the actual nature, whether security or commodity.

Here people need to understand that the latest statement by the SEC over the nature of crypto assets doesn’t mean that the SEC agency admitted that XRP is a non-security crypto token.

Also people should not forget that in the recent week the SEC agency filed a motion in the court to secure regulatory approval to appeal against the court ruling in the XRP lawsuit, where the court judge already ruled that XRP was not a security.