CCA Regulatory and Legal Frameworks 3

Question 1

Under the Howey Test, which element is NOT required to classify a crypto token as a security?

Accepted Answer

Physical delivery of the underlying asset

Answer

The Howey Test has four prongs: investment of money, in a common enterprise, with an expectation of profits, derived from the efforts of others — physical delivery is not a factor.

Question 2

Which U.S. agency published guidance in 2019 stating that certain crypto-to-crypto exchanges do not require MSB registration because they involve no fiat currency?

Accepted Answer

FinCEN

Answer

FinCEN's May 2019 guidance clarified which crypto activities trigger MSB registration requirements, noting that certain peer-to-peer and software-only activities may not require registration.

Question 3

Wyoming's Special Purpose Depository Institution (SPDI) charter is significant because it allows banks to:

Accepted Answer

Custody digital assets without obtaining federal deposit insurance

Answer

Wyoming's SPDI charter allows banks to legally custody digital assets for customers without being required to carry FDIC insurance, making them 100% reserve institutions.

Question 4

Under OFAC sanctions rules, a U.S. crypto exchange must:

Accepted Answer

Screen all transactions and block transfers involving sanctioned individuals, entities, or jurisdictions

Answer

OFAC requires U.S. persons and entities, including crypto exchanges, to screen all transactions—regardless of amount—and block any involving parties or jurisdictions on OFAC's SDN or other sanctions lists.

Question 5

The 'crypto mom' nickname refers to which SEC commissioner known for advocating a regulatory 'safe harbor' for token projects?

Accepted Answer

Hester Peirce

Answer

SEC Commissioner Hester Peirce earned the nickname 'Crypto Mom' for her proposal of a three-year safe harbor that would allow token networks time to decentralize before being subject to securities laws.

(CCA) Certified Cryptocurrency Auditor Practice Test

(CCA) Certified Cryptocurrency Auditor Practice Test

CCA Regulatory and Legal Frameworks 3