One of SEC’s officials recently said that the SEC  working on “supplemental guidance to help organizations clarify “whether their crypto-fund raising efforts fall under the securities laws”.

Currently, the SEC has relied on the “Howey Test” to decide if an Cryptocurrency is a security or not and has decided that a number of Initial Coin Offers ( ICOs) have issued in effect securities and not been regulated to do so. This will lead to prison sentences and substantial fines, so SEC clarification of what is and what is not a security token will be welcomed in the USA.