SEC Issues New Disclosure Guidance for Crypto Companies
The U.S. SEC has recommended that crypto companies provide detailed disclosures if their tokens might be considered securities.
Key Points
The SEC emphasized clarity on how a company's operations and token roles are defined.
While the SEC did not specify which crypto tokens are securities, the guidance aims to clarify how federal securities laws apply to digital assets.
Disclosure recommendations include details on the business model, token purpose, and network technology stack.
No Legal Binding
The guidance is non-binding and does not alter existing legal rules or require new regulations.
It is part of ongoing efforts to define SEC jurisdiction over the crypto industry.
This move continues the SEC’s work to define clearer regulatory frameworks for the evolving crypto market.