‘Active Treasury’ is a dangerous misnomer that must not be ignored

The article argues that the term 'Active Treasury' is misleading when applied to digital asset treasuries that engage in yield-generating activities like staking. It contends that such activities transform these entities from passive holders into active operators, requiring enhanced governance structures or regulatory reclassification.

• →The term 'Active Treasury' creates confusion about the true nature of digital asset treasury operations.
• →Digital asset treasuries engaging in staking and yield-chasing activities become operators rather than passive holders.
• →Such operational activities require fund-grade governance structures to manage associated risks.
• →Current regulatory frameworks may need to be updated to properly classify these active treasury operations.
• →The misnomer could lead to inadequate risk management and oversight of digital asset treasuries.