Bloomberg Law
Oct. 20, 2022, 5:16 AM

FTX US Will Vet if Coins Count as Security Before Listing (1)

Allyson Versprille
Allyson Versprille
Bloomberg News

The US arm of crypto trading giant FTX will begin conducting its own analysis to determine whether assets are securities before listing them, founder Sam Bankman-Fried said in a blog post published on Wednesday.

While US regulators have said some tokens, like Bitcoin, aren’t securities, “there are a number which are unclear,” the crypto executive wrote. Until there’s more clarity on the issue, FTX US will have its legal team conduct an analysis of each asset it wants to list under a decades-old framework for assessing whether something is a security, known as the Howey Test, Bankman-Fried added.

The company’s ...