As summarized above, system governance, impartial design and distributed ownership all get to the heart of decentralization. (For more on defining decentralization, see Miles Jennings' proposed ). It seems like Congress has, for now, settled on 20 percent token ownership/voting stake being the limit of control a person or group with "unique permission or privilege [with respect to] functionality, operation, or rules of consensus or agreement of a blockchain system or its…

The SEC Division of Corporate Finance public statement agrees with arguments proposed by crypto advocates. The Division concluded that "protocol staking" activities are not investment contracts under Howey. Their argument relies on the notion that these activities are "administrative or ministerial," as opposed to being "derived from the entrepreneurial or managerial efforts of others"—the test under Howey.

Some have contended that cryptocurrency staking is, as the Division noted, a…

The Department of Labor's decision to rescind its (effective) prohibition on cryptocurrencies in 401(k) retirement portfolios comes as a number of other federal agencies have shown increasingly open attitudes toward cryptocurrencies. (See e.g. the SEC’s recent .)

This DOL decision is in keeping with the SEC's decision to authorize Bitcoin spot ETFs or . Although this DOL decision did not require a court battle invoking the Administrative Procedure Act or the need for…

On the heels of the Department of Labor rescinding its prior guidance disavowing cryptocurrencies in 401(k) plans due to volatility, FINRA has taken the opposite tack. FINRA’s censure here is sensible on paper—certain disclosure requirements were not met, and that’s the end of the case.

It’s clear that FINRA is still keen on enforcing its rules with regard to digital assets, but this AWC also hints at some of the murkiness surrounding cryptocurrencies and broker-dealers at present.…