#SECGuidance

The SEC Guidance, issued by the U.S. Securities and Exchange Commission, provides clarity on how digital assets like cryptocurrencies may be classified as securities under federal law, guiding issuers, developers, and investors on regulatory compliance. It emphasizes the application of the Howey Test to determine whether a digital asset qualifies as an investment contract, thereby requiring SEC registration. This guidance aims to foster innovation while ensuring investor protection and market integrity. It also helps companies understand disclosure obligations, licensing needs, and legal risks associated with crypto projects, ultimately influencing the way blockchain-based businesses structure token offerings in the evolving regulatory landscape.