📚 [Analysis] Understanding the SEC’s Guidance on Digital Tokens with the Hinman Standard - Blockchain Association

Washtington, D.C.'s Blockchain Association asserts that realizing the full potential of a new digital asset economy must begin with robust consideration of existing and needed regulations for these tokens and networks. The SEC’s Corporation Finance Director William Hinman has suggested a regulatory framework for digital tokens based on the level of decentralization of the token network, which has sparked immediate scrutiny and speculation around every project vying to prove satisfaction of this standard. As it's understood, the Hinman test infers that a project should meet the standard for decentralization if it is more decentralized than the Bitcoin or Ethereum networks. In this piece, the Blockchain Association describes exactly what this comparative standard could mean and explains why much more regulatory certainty for these frameworks is immediately needed from the SEC and Congress.