The U.S. Securities and Exchange Commission (SEC) has submitted a letter to Judge Jed Rakoff in the ongoing case against Terraform Labs, arguing that the crypto assets in question should be classified as securities. The SEC proposes that the court, rather than a jury, determine whether the tokens are securities. The SEC cites the Howey Test, which assesses whether there is an investment of money in a common enterprise with expectations of profit primarily from the efforts of others, to support its argument. The SEC insists that there is no significant dispute over the facts establishing the nature of the crypto asset offerings, framing the issue as a legal question suitable for the court’s decision. The SEC’s submission is part of its efforts to address the regulatory status of cryptocurrencies and related assets. The decision in this case could potentially influence how other crypto assets are regulated under U.S. law. Terraform Labs has also requested a summary judgment in the case, referencing a separate case involving alleged SEC misrepresentations as a precedent that could impact their own case.

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Information	Details
Geography	North America
Countries
Sentiment	neutral
Relevance Score	1
People	Kwon Do-hyung
Companies	W.J. Howey Co., Terraform Labs PTE Ltd, DEBT Box, Judge Jed Rakoff, SEC
Currencies	None
Securities	None