From Yahoo Finance: 2025-04-10 18:05:00

The SEC is urging crypto companies dealing with tokens that could be securities to provide detailed disclosures to ensure compliance with federal securities laws. The nonbinding guidance recommends precise disclosures about business activities and the role of tokens. The SEC’s Division of Corporation Finance is working to define its jurisdiction in the digital asset sector.

Companies filing disclosures should be clear about their operations, including crypto or blockchain network development, technical specifications, and milestone achievements. The SEC’s staff statement does not provide definitive guidance on which cryptocurrencies qualify as securities. The SEC is set to hold a second roundtable focusing on trading to clarify the application of securities laws to crypto assets.

The SEC’s latest staff statement on disclosures emphasizes the importance of providing specific details about token offerings and registration involving equity or debt securities. The statement recommends disclosing information related to networks, applications, and crypto assets to provide greater clarity on regulatory compliance.

The Division of Corporation Finance is issuing views on the jurisdiction of the SEC in the digital asset sector, as part of efforts to define regulatory boundaries. The staff statement is not formal guidance or rulemaking but serves to provide clarity on the application of federal securities laws to crypto assets.

Previous staff statements under Acting Chair Mark Uyeda have addressed stablecoins and memecoins, reflecting the SEC’s ongoing efforts to provide guidance on crypto regulations. The SEC’s new crypto task force is expected to further define the agency’s jurisdiction in the digital asset sector.

Read more: New SEC Staff Statement Urges Detailed Crypto Token Disclosures