[westurner]

> I think people are viewing this as an attack on crypto, when its actually just common sense.

> […] The problem is these companies essentially reserve the right to disregard that contract and could then sell their company, domestically or overseas, for cash, without recompensating any token holders.

> Securities regulation and law stops that. But the tokens do need to be lawful securities in order for the court to recognize them.

This. IRS regards coins and tokens as capital gains taxable things regardless of whether they qualify as securities. SEC exists to protect investors from scams and unfair dealing. In order to protect investors, SEC regulates issuance of securities.