Circle Internet Financial highlights the challenges posed by recent U.S. regulatory signals around digital assets, emphasizing the need for a clear, forward-looking regulatory framework. They argue that existing laws, like the 1946 Howey test, are outdated for 21st-century technologies, as digital assets can simultaneously function as securities, commodities, and currencies. The SEC's new Framework for "Investment Contract" Analysis of Digital Assets introduces the concept of "Active Participants," potentially broadening the scope of what can be considered a security and diminishing the role of decentralization. This has led to increased uncertainty and frustration within the crypto community, as the Framework complicates the determination of a digital asset's status, lacking clear guidance and weighting of factors. Circle advocates for legislative changes, such as the Token Taxonomy Act, to foster innovation and prevent the U.S. from falling behind countries like Switzerland and Singapore, which have established more contemporary digital asset regulations. Despite the regulatory challenges, Circle remains optimistic about future changes and continues to engage with policymakers to drive the industry forward.