CTF Written Submission

Mysten Labs’ Response to “There Must Be Some Way Out of Here”: The Paramount Importance of Utility to the Security Status of Digital Assets

May 9, 2025
  • The utility and real-world use case of a digital asset should be a primary determining factor in whether the asset is deemed a "security" under U.S. federal securities laws.
  • Digital assets with utility and real-world use cases are more appropriately regulated by the Commodity Futures Trading Commission (CFTC) rather than the Securities and Exchange Commission (SEC).
  • The regulatory approach should avoid excessively complicated, multi-part legal tests and instead focus on practical, usable, and reasonable legal standards.

Last Reviewed or Updated: May 9, 2025