#SECGuidance

The U.S. Securities and Exchange Commission (SEC) has released guidance through its Division of Corporation Finance to clarify how federal securities laws apply to crypto asset markets. The statement focuses on registration and disclosure requirements for securities tied to crypto asset networks, applications, and related investment contracts.

The guidance details key disclosure obligations under regulations such as Regulation S-K, Form S-1, and Form 10. These include descriptions of business operations, risk factors, specific features of the securities (like governance and transferability), management disclosures, financial reporting standards, and transparency around technical elements such as smart contract code.

The SEC aims to provide clarity for issuers of crypto asset-related securities, ensuring compliance with rules similar to those governing traditional equity and debt securities. The guidance underscores the need for clear disclosures to align crypto-related offerings with existing securities regulations.