A lot of people seem to not be aware what a major win for privacy the SEC's interpretation on securities is, so let me spell this out for you.
Under Gensler, the SEC attempted to classify digital asset developers as securities broker/dealers.
This would have meant that anyone offering digital asset services and software would have needed to register with the SEC and apply KYC/AML programs by law.
Similar language has been included in latest market structure proposals, which insufficiently clarified who exactly such registration requirements would apply to.
The SEC's interpretation now makes clear: No AML/KYC for bitcoin, at least not under the SEC's authority.
Probably the biggest advancement for privacy under this entire administration.
๐บ๐ธโWeโre not the securities and everything commission anymoreโ
The SEC has issued an interpretation that clarifies the application of federal securities laws to digital assets using definitions in the GENIUS Act.
The document clarifies bitcoin and other digital assets as a commodity. Going forward, only securities that have been tokenized will fall under the SEC's authority, says SEC Chair Paul Atkins.
The interpretation ends a long dispute over the SEC's jurisdiction over digital assets which potentially could have led to the classification of digital asset developers as securities brokers with grave implications for user privacy.
The interpretation appears to additionally advance clarity on proposals in market structure drafts, which insufficiently defined what digital assets could be subject to broker/dealer registration requirements.
The interpretation is a major win for privacy, as broker/dealers are required to implement KYC/AML programs by law.
Find the full interpretation here:
https://www.sec.gov/files/rules/interp/2026/33-11412.pdf
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