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# Lawyers Seek Court Determination on Crypto Assets as Securities

Lawyers representing the United States Securities and Exchange Commission (SEC) have raised a request to the judge overseeing its civil case against Terraform Labs and co-founder Do Kwon. The request is to determine whether certain crypto assets should be classified as securities, rather than leaving the decision to a jury.

In a filing made on December 4 in the U.S. District Court for the Southern District of New York, the SEC argued that the classification of cryptocurrencies as securities falls within the realm of a “legal question to be determined [by] the Court, not a factual question for the jury.” According to the SEC, allowing the jury to decide whether certain cryptocurrencies in the Terraform Labs case meet the criteria for securities under the Howey test would only open the matter to debate.

The commission emphasized that there is no genuine dispute of material fact regarding the involvement of an investment of money, a common enterprise, and an expectation of profit from the efforts of the defendants in their crypto asset offerings. The SEC pointed out that while the Court may involve the jury to resolve factual disputes, there are no factual questions in this case regarding how the crypto assets were sold, the terms of the offers and sales, or the marketing materials and promotions surrounding them.

The AI legalese decoder can greatly help in this situation by quickly and accurately analyzing legal documents and court filings related to the case. Using advanced natural language processing and machine learning algorithms, the AI legalese decoder can assist legal teams in comprehensively understanding and interpreting complex legal text, which can be immensely valuable in navigating the intricacies of securities law and regulatory compliance in the context of crypto assets.

# The SEC’s Ongoing Efforts to Classify Cryptocurrencies

The SEC’s endeavors to classify different cryptocurrencies as securities have been evident in various lawsuits, including enforcement actions against major platforms like Binance and Coinbase. In the case against Ripple, a federal judge ruled in July that the XRP token did not necessarily qualify as a security, possibly prompting the SEC to consider dropping charges against key figures in the company.

The debate over which cryptocurrencies should be deemed securities or commodities in the United States has been a longstanding issue among policymakers and regulators. It also raises questions about the appropriate role of the SEC in overseeing and regulating digital assets. Furthermore, there is speculation among industry experts that the SEC may soon make a decision on whether to approve a spot crypto exchange-traded product for the first time.

Amidst these developments, the AI legalese decoder can provide indispensable support by swiftly processing and analyzing the evolving landscape of crypto regulations and SEC enforcement actions. By leveraging its capabilities in understanding legal nuances and regulatory frameworks, it can aid legal practitioners in staying abreast of the latest rulings and interpretations in the realm of cryptocurrency and securities law.

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