In a recent announcement, the U.S. Securities and Exchange Commission (SEC) emphasized the importance of transparency for crypto companies that issue or manage tokens that might qualify as securities. This guidance, unveiled before an upcoming roundtable focused on trading, seeks to clarify the complexities underlying federal securities laws applicable to the crypto asset sector. The SEC’s non-binding statement advises firms to meticulously outline their business operations and the specific role of their tokens within those frameworks.
The guidance notably refrains from definitively categorizing which cryptocurrencies are regarded as securities. Instead, it indicates that various offerings may encompass securities tied to networks, applications, or other digital assets. Furthermore, disclosures should encapsulate critical aspects, including the status of network development, the technology employed, and the rights allotted to token holders. As this discourse evolves, adherence to these disclosure requirements may significantly impact how investors perceive the legitimacy of crypto firms.