The SEC's second roundtable on cryptocurrency, titled "Dilemma: Tailoring Regulatory Measures for Cryptocurrency Transactions," has just concluded, and the results have not yet been announced. This article reviews the outcomes of the first roundtable held on March 21, analyzes the SEC's regulatory stance on Meme coins, PoW tokens, and NFTs, discusses the urgent need for regulatory clarity in Web3 projects, and looks forward to potential breakthroughs from the second round of meetings.
Introduction
The U.S. Securities and Exchange Commission (SEC) has just concluded its second roundtable on cryptocurrency, themed "Dilemma: Tailoring Regulatory Measures for Cryptocurrency Transactions." The results of the meeting have not yet been announced, and the Web3 community is eagerly awaiting them. This article first reviews the outcomes of the first roundtable held on March 21, analyzes the SEC's latest regulatory attitude towards cryptocurrency assets, and anticipates the potential benefits the second roundtable may bring to Web3 development.
First Roundtable Review: The First Step Towards Regulatory Clarity
The SEC's long-standing strategy of "enforcement over regulation" has left the Web3 industry troubled by regulatory uncertainty. On March 21, 2025, the SEC held its first cryptocurrency roundtable, themed "Where We Came From, Where We Are Going: Defining Securities Status," touted as a "Spring Sprint Towards Cryptocurrency Clarity." This meeting invited industry heavyweights and marked a shift from confrontation to dialogue by the SEC.
Meeting Outcomes: Limited but Progress Made
Acknowledgment of Past Failures: The SEC admitted that its previous regulatory approaches had shortcomings but did not propose specific future directions.
Howey Test Remains a Focus: Half of the meeting was dedicated to discussing the Howey Test established in 1946, focusing on how to determine whether a token qualifies as a security.
Two Clear Conclusions:
Meme Coins Are Not Securities: Meme coins (such as the tokens issued by Trump) do not meet the Howey Test's criteria of "common enterprise" and "reliance on the efforts of others" due to the lack of a clear team driving them or profit promises.
PoW Tokens Are Not Securities: Tokens using Proof of Work (PoW) (such as Bitcoin) also do not constitute securities due to their decentralized nature.
Four Conditions of the Howey Test:
Is there an investment of money?
Is there an investment in a common enterprise?
Is there reliance on the efforts of others?
Is there an expectation of profit?
Although Bitcoin and Meme coins involve investment, they lack "common enterprise" and "efforts of others," thus are not considered securities. This explains the current surge in Meme coins and the regulatory exemptions for PoW tokens.
Potential Benefits for NFTs
SEC executives have indicated they are considering exempting NFTs from securities classification, allowing Web3 startups to raise compliant funding through NFT issuance. If this policy is implemented, it will significantly reduce the financing costs and compliance risks for startup teams, promoting the development of the Web3 ecosystem.
Case Review:
Stoner Cats: Raised $8 million through NFTs to produce an animated series, NFT holders gained viewing rights and could trade on secondary markets, and faced a lawsuit from the SEC.
Flyfish Club: Raised $14 million through NFTs to build a membership-based restaurant, with NFTs representing membership rights and tradable, also facing SEC enforcement.
If the NFT exemption policy is passed, similar projects will become legal and compliant, injecting vitality into Web3 innovation.
Unresolved Issues: The Regulatory Dilemma of Functional Tokens
The first roundtable did not provide clear regulations for assets with clear project support, such as DeFi protocols and functional tokens. These tokens often have practical application scenarios (such as decentralized finance and data sovereignty) but struggle to realize their potential due to unclear regulations. The current situation of "projects and tokens being two separate entities" limits the collaborative development of Web3. Clarifying the regulatory rules for these tokens is the industry's most urgent need.
Outlook for the Second Roundtable
The second roundtable, held on April 10 (note: based on context, it should be April 11), focuses on cryptocurrency transaction regulation, themed "Dilemma: Tailoring Regulatory Measures for Cryptocurrency Transactions." The meeting discussed the market structure of trading platforms, jurisdictional coordination, and the applicability of securities law in the tokenized market. SEC Acting Chair Mark Uyeda suggested that a temporary regulatory framework might be introduced in the short term, allowing for innovation while establishing long-term rules.
Although specific results have not yet been announced, here are potential breakthrough directions:
Trading Platform Registration: Clarifying how cryptocurrency exchanges can register as brokers, alternative trading systems, or national securities exchanges.
Disclosure Framework: Tailoring disclosure requirements for cryptocurrency assets, such as Hester Peirce's "Safe Harbor 2.0" proposal, providing a three-year grace period to achieve decentralization.
Conflict and Risk Management: Addressing the conflicts of interest arising from trading platforms that combine brokerage, clearing, and custody services.
Conclusion
The SEC's first roundtable brought initial clarity to the regulation of Meme coins, PoW tokens, and NFTs, but rules for functional tokens like DeFi remain to be clarified. The second roundtable carries hopes for establishing tailored rules for cryptocurrency transactions, potentially providing more flexible compliance paths for Web3 projects. The future of Web3 is full of potential, but regulatory clarity is a key step. Let us await the results of the second roundtable, looking forward to greater development for the Web3 ecosystem!
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