SEC provides guidance on applying securities laws to crypto, encouraging better business disclosures

From Cointelegraph

April 10, 2025 9:05 pm:

The US SEC staff issues guidance on how federal securities laws apply to crypto, urging companies to provide better details about their business. The Division of Corporation Finance shared views on disclosures, including specifics about operations, token functionality, revenue generation, and technology details like blockchain type and security measures. Commercial litigator Joe Carlasare sees this as a positive step towards regulatory clarity and transparency.

SEC staff emphasizes the need for crypto firms to disclose risks like price volatility, cybersecurity vulnerabilities, and custody risks. Issuers must provide a complete description of securities, including dividend mechanisms, profit-sharing, and voting rights enforcement. Additional disclosures should cover protocol code modifications, security audits, token supply, issuance details, and key executives. This guidance aims to support the SEC’s Crypto Task Force efforts in regulating crypto trading, custody, tokenization, and decentralized finance.

Read more at Cointelegraph: SEC staff gives guidance on how securities laws could apply to crypto