According to PANews, the SEC’s Division of Corporation Finance has issued new guidance aimed at demystifying the application of federal securities laws within the crypto asset market.
This statement clarifies the registration and disclosure requirements for securities tied to networks, applications, and crypto assets—including those defined as investment contracts by outlining key disclosure elements found in documents like Regulation S-K, Form S-1, and Form 10.
These elements cover comprehensive business descriptions, associated risk factors, the inherent characteristics of the securities, management details, audited financial statements, and even the disclosure of smart contract code. In related news, global regulatory bodies are also stepping up their oversight of digital assets. European regulators, for example, have been working on draft rules intended to strengthen investor protection and enhance market transparency, while certain Asian markets are tightening compliance measures for crypto-financial products. These coordinated regulatory initiatives reflect a broader industry trend towards improved transparency and a more stable investment environment in the rapidly evolving digital asset space.