BREAKING: 🇺🇸 SEC issues new guidance on when crypto assets are subject to securities laws. Key points include: • Crypto assets can be subject to securities laws when they are offered and sold as part of an investment contract under the Howey test. • Promises of profits from the issuer’s essential managerial efforts can create an investment contract. • Current utility, features or indefinite future potential alone generally do not create an investment contract. • Once a crypto system is functional and has no central party controlling its success or failure, issuer statements generally would not create a new investment contract. • Buybacks of functional crypto assets generally do not constitute promises of essential managerial efforts.