Drew Hinkes

Not your legal title, not your coins.

@propelforward and I have spent the last 48 hours in a near-constant exchange of texts, emails, and tweets unpacking this interpretation, and we are not done yet. Monday's webinar will be a continuation of that conversation, and we'd love for you to join us. Send us your questions and the issues you want us to address!

After years of uncertainty, the #SEC and #CFTC have issued a landmark interpretation that reshapes the regulatory framework for digital assets. Join us for a webinar on the practical implications for your business and compliance strategy. Register: bit.ly/3PNT8rW

🎉Excited to share a new paper w/ @Andrea_Tosato & @ProfYYadav1 on the #moneyness of #stablecoins, developing a public/private law framework for what makes something function as #money & applying it to assess #stablecoins before & after the #GENIUSAct, forthcoming @YaleLJournal

@Andrew_FBB Concerned by a lack of depth at 3b, a lot of injury risk/ “projectable” types at SP and lack of holds but I think my offense should be strong and if at least some of My pitching dice rolls hit I should be in good shape.

@propelforward A

Drop your #FantasyBaseball team below and I will give it a grade👇

@Ob1JohnKenob1 @CardPurchaser this is why i'm thinking of holding vs ripping mine. the dilution of these products is really really sad.

@propelforward @CardPurchaser 0 through 3 boxes.

Completed 3 hobby boxes of 2026 Topps Heritage. 31 Glossy (8 Silver) 32 Blue Sparkles 31 Grey Border 4 Filmstrip 2 Deckel Edge 2 Raw Power 3 1977 Gold Foil 4 Clubhouse Collection 1 Game Used Relic 1 Green /99 1 Gold /50 @CardPurchaser

One bonus thing this approval leaves completely unaddressed: how tokenized securities interact w the UCC & commercial law Article 8, perfection of security interests, what constitutes "control" over a tokenized security are all unaddressed here (which also kind of makes sense since it's a state law issue, not directly an SEC issue) and it matters enormously for institutional adoption @propelforward @Prof_CarlaReyes and many others have been raising these questions for a while. They're still open questions and we need to address them at some point. As with my hope for how SEC regs around tokenized securities land on more cryptonative approaches, I hope the UCC does the same and doesn't slap a new coat of paint on the same set of standards.

@bgrace805 The problem here is that a transfer of the digital asset is not an assignment of the legal rights, even if there’s a pointer to a legal agreement somehow associated with the digital asset.

@propelforward Via the digital asset's metadata. Creators of NFT collections have done this to license certain IP rights in the artwork to each NFT's owner.

I'm very much enjoying the SEC guidance but there do appear to be some private law/commercial law issues here... how does a crypto asset "convey [presumably legal] rights" ?

@SamirPatelLaw @bgrace805 Say more.

@propelforward @bgrace805 The idea of dual integration is live and well.

@SamirPatelLaw @bgrace805 is it then the token that conveys the rights or the agreement?

@propelforward @bgrace805 "[O]ften pursuant to an end user agreement."

@JoshR_GSR @ThaniaCh or, time limit your promises. Or offer achievable, measurable milestones.

@propelforward @ThaniaCh Well, and to not make any promises ever. We all shall debate which produces more optimal outcomes

As much as I love footnote 96, footnote 50 gives me heartburn. It defines decentralization as requiring absolutely no person or group to have operational, economic, or voting control. That is arguably unobtainable. In practice, virtually every functional system has some concentration of control, whether through a core dev team, a foundation treasury, a set of validators, or a governance token distribution that is never truly evenly spread. This is not a workable legal threshold, and regulators and courts will struggle to apply it consistently.

@JoshR_GSR @ThaniaCh were not securities any longer; now, decentralization is no longer the aspirational state; the focus under the new guidance is now on reaching a "functional" blockchain system (defined in fn49).

@JoshR_GSR @ThaniaCh recall that "decentralization" was the path out of securities status under the Hinman doctrine; this spurred the industry to try to understand it, quantify it, measure it, and implement strategies to reach it, so actors could argue they were decentralized and thus, the tokens 1/2

@bgrace805 How is a licensed “affixed”?

@propelforward Through an affixed license that travels with the asset?

@scottwalker99 Ah Scott- its not my work. Thank the good people at the @SECGov for issuing clear guidance.

@propelforward Drew, this is an amazing breakdown into simple bullet points even I can understand… thank you!

Hot off the presses, new guidance on the application of Federal security laws to digital assetsfrom the SEC sec.gov/newsroom/press…