Wire · regulatory
The SEC crypto proposal rests on a term no one can define
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Fusion42 · 23 October 2026 · Fusion42 review
The SEC's crypto regulation proposal hinges on the undefined term 'essential managerial efforts,' complicating clear guidance for issuers and investors. The proposal covers multiple regulatory facets but lacks a solid definition for this key phrase, prompting suggestions for a more precise regulatory approach.
This Wire brief sits within Fusion42's coverage of Fintech.
◆ ◆ The Wire takeaway
Crypto founders raising capital should prepare for regulatory uncertainty around key terms in SEC rules that could affect disclosures and contracts. The clearest path may be to focus on exemptions for fundraising rather than admitting to investment contract status.
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1 source · 23 Oct 2026
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