#SECGuidance

As of 2025, the U.S. Securities and Exchange Commission (SEC) has updated its guidance on cryptocurrencies to ensure better investor protection and market transparency. The SEC emphasizes that if a digital asset functions like a traditional security—offering profit expectations based on the efforts of others—it must comply with securities laws. Issuers of crypto asset securities are expected to disclose clear details about their business models, risks, and financials. However, the SEC has also clarified that some assets, such as meme coins, may not qualify as securities and are instead viewed as collectibles. These do not need to follow the same regulatory requirements, as they lack key investment features like returns or ownership rights. This guidance is part of the SEC’s broader push to adapt regulatory practices to the evolving crypto landscape, aiming to strike a balance between fostering innovation and ensuring that investors are properly informed and protected in the digital asset market.