According to the source, a senior SEC official described which token sales would not qualify as securities offerings, but no official SEC transcript or release was provided in the content, so traders should wait for an SEC.gov publication before acting, source: SEC.gov. Under existing U.S. law, a token sale is unlikely to be a securities offering if it does not satisfy the Howey investment contract test, particularly where there is no expectation of profit from the efforts of others, source: SEC v. W.J. Howey Co., 328 U.S. 293, source: U.S. Supreme Court. SEC FinHub’s 2019 Framework indicates that tokens used primarily for consumptive utility on a fully developed network with decentralized governance and no fundraising for development trend away from being securities, source: SEC FinHub, Framework for Investment Contract Analysis of Digital Assets, 2019, source: SEC.gov. Bitcoin’s commodity treatment and lack of an ICO illustrate that decentralized mining issuance without a fundraising sale has not been treated as a securities offering by regulators, source: CFTC v. McDonnell, 287 F. Supp. 3d 213, source: E.D.N.Y. 2018; source: U.S. Senate testimony of SEC Chair Gary Gensler acknowledging Bitcoin as a commodity, 2021. Clearer legal guidance has historically reduced perceived regulatory risk and supported crypto prices, exemplified by XRP’s rally after the July 13, 2023 ruling that certain programmatic sales of XRP were not investment contracts, source: SEC v. Ripple Labs Inc., No. 20-cv-10832, source: S.D.N.Y. July 13, 2023; source: Reuters, July 13, 2023.