#SECGuidance The U.S. Securities and Exchange Commission (SEC) has issued guidance on how federal securities laws may apply to cryptocurrencies. In a staff statement released on April 10, the SEC’s Division of Corporation Finance aimed to clarify the application of these laws to crypto assets. While the guidance does not carry legal force, it outlines the type of disclosures crypto companies should provide.

The Division emphasized that businesses issuing or trading tokens potentially classified as securities should disclose details about their operations, including how tokens function, revenue models, and whether they plan to remain involved in the network or app post-launch. Firms are encouraged to specify technological aspects such as blockchain type (proof-of-work or proof-of-stake), transaction speed, security measures, and whether the protocol is open-sourced.

The SEC also noted that registration is unnecessary for crypto offerings that do not qualify as securities or investment contracts. However, the statement did not resolve ambiguities regarding which digital assets may be considered securities.