Apr 292019

SEC FinHub’s Digital Asset Framework: A Guide for Issuers and Secondary Trading Markets

Thomas J. Kim, Lilya Tessler, Verity A. Van Tassel Richards, Daniel Engoren and K. Braeden Anderson
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On April 3, the U.S. Securities and Exchange Commission (SEC)’s Strategic Hub for Innovation and Financial Technology (FinHub or Staff) released its much-anticipated guidance, the Framework for “Investment Contract” Analysis of Digital Assets (Framework), regarding its views on factors to consider in applying the Howey test to digital assets. In conjunction with the Framework, the SEC’s Division of Corporation Finance published its first no-action letter in connection with the sale of digital assets, providing relief to TurnKey Jet, Inc., for its proposed token sale.

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Thomas J. Kim

tkim@sidley.com

Lilya Tessler

Dallas, Miami

ltessler@sidley.com

Verity A. Van Tassel Richards

vvantasselrichards@sidley.com

Daniel Engoren

dengoren@sidley.com

K. Braeden Anderson

kanderson@sidley.com

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