Davis Polk partner and ESG practice head Joe Hall was quoted in CoinDesk on crypto tokens and the SEC’s recent enforcement actions. Joe explained that when deciding whether a crypto token may be considered a security, there are usually arguments to be made on both sides. “I’ve analyzed a lot of different tokens,” he noted.

Joe added that the SEC decided to call nine tokens securities but not others in its recent insider trading case. “Until the regulator explains why it didn’t name the other tokens as securities, it will be hard to nail down an understanding of the weight it gives each factor. There's no broader analysis of all relevant facts and circumstances.”

As SEC Leans on Enforcement to Regulate, Crypto Lawyers Study Every Word,” CoinDesk (August 18, 2022)