🧵 Big step forward in yesterday’s SEC token taxonomy guidance.
Clear statement: ALGO is not a security.
And it doesn’t matter where it appears. The substance is what counts.
And to all those freaking out that AlGO was “only” mentioned in a footnote, a careful read of the guidance clearly shows that the footnote isn’t burying ALGO - it’s broadening the rule:
The SEC used futures-linked tokens as examples in the body of the text, but made clear that’s not the test.
That’s exactly where ALGO comes in 👇
ALGO is cited to show a token can be a digital commodity without underlying a futures contract.
In other words:
•Commodity status ≠ dependent on futures markets
•ALGO qualifies on its own merits
That’s a substance-based classification.
And importantly, it’s stronger.
And that’s exactly why the placement doesn’t diminish the impact. It actually clarifies and strengthens the reasoning behind the classification.
@AlgoFoundation #algo #algofam
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