The implications of such definitions transcend into matters of jurisdiction, as they will determine which authority should regulate crypto assets.
Rewriting the Law
Since the crypto market has grown so quickly and is worth nearly $2 trillion, regulatory structures are struggling to catch up and adapt.
At present, both the SEC and the Commodity Futures Trading Commission shoulder policing responsibilities, albeit following the current law, which is framed for more conventional assets like stocks and bonds.
Robert J. Jackson Jr., New York University Law School Professor an SEC ex-commissioner, replicated Gensler’s sentiment by saying “It’s past time for regulators to be clear about who is responsible for this, and that clarity will be beneficial to the market.”
Looking for Benefits
Jackson further asserts, “It will be beneficial to investors. It will even be beneficial to those members of Congress and the other public policymakers who want to know whom to ask, and who to hold accountable for what is going on in those markets.”