Is Crypto a Security? Find Out What the SEC Still Won’t Tell You in 2025!

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Law and Ledger is your go-to source for the latest in crypto legal news, brought to you by Kelman Law – a law firm that’s so into digital assets, we might actually own some. But who’s counting?

The following opinion editorial was written by Alex Forehand and Michael Handelsman for Kelman.Law.

Is Crypto a Security? Why This Question Still Matters in 2025

Ah, the eternal question that haunts every crypto enthusiast like a ghost at a Halloween party: “Is crypto a security?” It’s been asked in crypto conferences, congressional hearings, SEC speeches, courtrooms, and probably by your grandma when you tried to explain Bitcoin to her. And yet, we’re still here, in 2025, with the answer just as clear as a foggy morning.

Ever since the SEC v. W.J. Howey Co. case became the unofficial Bible of tech regulation, we’ve been waiting for clarity. Spoiler alert: it’s not coming. At least not in a way that makes sense.

Despite years of regulatory activity, the U.S. legal landscape is like a patchwork quilt that’s still unraveling. Courts are starting to say, “Hey, maybe tokens aren’t automatically securities just because they exist.” But other courts are like, “Nah, we’ll still find you guilty based on some random criteria years later.”

The SEC’s stance has swung like a pendulum on a caffeinated high, making you wonder if they’re actually paying attention or just guessing at random. Sure, they’ve shown some signs of restraint lately, but let’s be real-there’s no official guidance. It’s like waiting for a bus that’s never coming.

Meanwhile, Congress is doing its thing, trying to pass a comprehensive digital-asset bill, but every time it looks like something’s going to happen, someone hits the “pause” button. In the meantime, we’re all left juggling different federal interpretations, civil case law, and trying to make sense of a regulatory landscape that feels more like a jungle gym than a system of laws.

This series is here to help you make sense of the madness. We’ll break down what you can actually know (not much) and what you can actually do (even less) in 2025. We’re diving into the Howey test, utility tokens, and all the fancy terms that’ll make your head spin-but we promise to keep it fun. Or at least tolerable.

Here’s what’s coming:

  • Part I: When do securities laws actually apply to tokens? And why the Howey test might just be a relic.
  • Part II: Utility tokens: myth, reality, and why you’re probably still using them wrong.
  • Part III: Token transactions and how secondary market trades sometimes don’t even matter (but the SEC sure thinks they do).
  • Part IV: DeFi protocols, staking, airdrops, NFTs-basically every buzzword you’re sick of hearing about, and why the traditional tests don’t work here.
  • Part V: The SEC and CFTC: Who’s boss, and why they’re probably just as confused as you are.
  • Part VI: Compliance tips for everyone-because you need to know how to play the game, even if the rules are still being written.

The goal? Not to pretend there’s certainty where there isn’t, but to turn the chaos of legal doctrine and regulatory changes into some kind of roadmap that actually makes sense. Maybe. It’s all about making sure you’re navigating U.S. securities law with a sense of humor and a well-prepared lawyer.

So, whether you’re an investor, a startup founder, or just a casual crypto enthusiast who’s tired of getting sued, you’ll need to stay informed. And guess what? That’s where we come in. Our team at Kelman Law is here to help you figure it all out. If you’re ready to stop drowning in legal jargon, schedule a consultation

here

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2025-11-25 11:45