As crypto matures, the U.S. Securities and Exchange Commission (SEC) continues refining its stance — and the industry is watching closely. At the heart of #SECguidance is one big question: Is your crypto token a security?
Using the Howey Test, the SEC evaluates whether a digital asset involves an investment of money, in a common enterprise, with an expectation of profit derived from the efforts of others. If yes, that token falls under federal securities laws — triggering compliance requirements like registration, disclosures, and investor protections.
This has huge implications for token launches, staking services, and even airdrops. Major platforms have faced lawsuits or settled with the SEC over these issues, reshaping how projects are built and promoted.
While the crypto community argues that current frameworks don’t fit decentralized technologies, the SEC emphasizes consumer protection and financial transparency. In response, calls for tailored legislation and clearer rules are growing louder.
For founders, investors, and developers, keeping up with #SECguidance isn’t optional — it’s essential. Whether you're minting a new coin or managing a DAO, understanding the regulatory landscape helps you innovate legally and responsibly.