Cryptocurrencies should not be subject to securities regulations, says legal expert

gas_fee_therapist · 2026-02-05T12:02:30+00:00

One of the leading voices in U.S. cryptocurrency legislation challenges the classification of cryptocurrencies, arguing that passive holding for value appreciation does not meet securities law criteria, emphasizing a legal distinction critical for regulatory debates.

gas_fee_therapist

2026-02-05 12:02:30

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One of the most prominent voices in U.S. cryptocurrency legislation has issued a provocative stance regarding the classification of cryptocurrencies under existing regulations. According to a recent report, legal expertise challenges the assumption that simply holding digital assets for appreciation should fall under the category of securities.

Legal Distinction: Passive Economic Interest

Teresa Goody Guillen, a respected attorney in the blockchain sector, argued that passive holding of cryptocurrencies in hopes of a value increase does not meet the legal parameters established by securities law. These should not be subject to the same regulations as active financial instruments. According to her analysis, passive economic interest differs significantly from instruments that generate income or voting rights. This is a fundamental legal distinction that should not be overlooked in regulatory debates.

Ripple’s Position and SEC Warnings

The attorney’s observations align with the position Ripple previously presented to the SEC. The company warned that arbitrary expansion of regulations over activities driven solely by speculative intent could stifle innovation in the crypto sector. These warnings reflect broader industry concerns about overregulation of an asset class still in development.

The debate continues to remain at the forefront of the legal community and market participants, where clarifying the legal status of cryptocurrencies remains a critical priority for the industry’s future.

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