The regulator said that based on the results of the Howey test, it could be concluded that investors intended to make financial profits related to the performance of the company that issues and manages DASH. Thus, this type of digital asset is an unregistered security and is subject to regulation by the SEC. Specifically, the asset must be registered under the Securities Act of 1933 and the Securities Exchange Act of 1934.<br
The DASH community has defended the crypto-asset, saying the Commission does not have sufficient arguments to justify such a classification. First of all, DASH is a cryptocurrency with a Proof-of-Work consensus mechanism, and it cannot be considered a security. In addition, the DASH ecosystem is a decentralized payment system that is not controlled by any organization, but is managed through a distributed registry between nodes in the network.
From the point of view of the SEC’s opponents, the classification of DASH by the Howey test also does not stand up to criticism. Because the community is not focused on the expectation of profit from any particular management company. DASH is a payment technology where miners get paid for providing processing power, masternodes get paid for running a node, but nobody gets paid or rewarded for owning a coin.
Earlier, former CFTC Chairman Timothy Massad proposed creating a self-regulatory organization (SRO) under the auspices of the SEC and CFTC responsible for developing regulatory rules governing the cryptocurrency industry and standardizing methods for classifying digital assets.<br