Regulators question SUI security status in blockchain review

The U.S. Securities and Exchange Commission (SEC) meets Mysten Labs to discuss the regulatory framework of Sui blockchain, focusing on whether its native token SUI meets securities eligibility under the Howey Test. The discussion covers Sui's architecture, token economics, and issuance model. Mysten Labs insists that SUI is a practical token for expenses, governance and staking, while the SEC is reviewing its initial issuance and secondary market activity. The results of this meeting may affect regulatory approaches to similar Proof of Stake (PoS) blockchains.