SEC Just Made Regulation Easier For Governance Tokens Like Uniswap

The SEC has clarified an important question for governance cryptocurrencies like Uniswap (UNI): Does giving thousands of investors voting power make a token a security? SEC staff now says generally no, provided the network is genuinely decentralized. The clarification could remove a major regulatory concern for decentralized finance (DeFi) projects and their investors. What Has the SEC Changed? In its November 2 update , SEC staff explained how governance tokens fit into the agency’s March crypto framework . Governance tokens let holders vote on how a crypto project operates. For example, UNI holders can vote on changes to Uniswap, including how the protocol spends its funds. Previously, there was uncertainty over whether thousands of people voting together could be considered one controlling group.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to BeInCrypto.