Davis Polk partner Joe Hall was quoted in Forbes on cryptocurrency regulation. Joe noted that the reason the SEC hasn’t provided regulatory clarity on which digital assets are considered to be securities is because of potential political ramifications. Joe explained that “It's easy to criticize the SEC from the outside. But I know exactly why they're doing it. There is just no benefit from the point of view of an individual to stick your neck out and actually try to solve the problem. It's much easier to bring enforcement actions against people for violating the laws.”

Joe also added that he expects cryptocurrency companies will continue to operate despite the risk of SEC enforcement actions because “if you weren't willing to live with regulatory uncertainty, there's just no way you could operate in the business.”

The Gap Between The Crypto Industry And Regulators Has Never Been Wider,” Forbes (August 1, 2022) (subscription required)