US Judge: The Nature of Tokens May Change, Securities Attributes May Not Always Remain

Fox Business reporter Eleanor Terrett posted on social media that in the latest development of the SEC lawsuit against Binance, Judge Jackson stated that the nature of tokens can evolve over time. Even if a token was initially considered a security, it does not mean it will always remain a security. Terrett noted that Judge Jackson might be the first judge to formally mention this. He stated that he insists that the asset itself, which is the subject of the so-called investment contract, is a 'security' because it can progress in commerce, be bought and sold by individuals on any number of exchanges, and be used in any manner over an indefinite period. This marks a departure from the Howey framework, which falls outside the court's ruling scope. The industry and future buyers and sellers do not have clear principles to distinguish whether tokens in the market are securities or non-securities.