Muhammad Abu Yusuf

#SECGuidance SEC staff provides guidance on how securities laws might be applied to crypto Apr 11, 2025, 06:35 GMT+5:302 min read Staff from the US Securities and Exchange Commission has provided guidance on how federal securities laws might be applied to crypto, stating that companies issuing or trading tokens that might be considered securities should provide more information about their business. The SEC's Division of Corporation Finance stated in a staff statement on April 10 that it was providing its opinions "to provide greater clarity on the application of the federal securities laws to crypto assets." The Division stated its statement was composed of observations of disclosures provided in current disclosure requirements and "addresses our views about certain specific disclosure questions that market participants have presented to the staff. The advice, which the Division said had "no legal force or effect," stated crypto businesses that are making disclosures regarding their business have usually provided a slew of information about their activities, including what specifically the company does, how any issued tokens operate and how the business earns — or seeks to earn — money. Firms have also made public whether they intend to continue involved in a crypto network or app after they open it up and, if so, what other entity will end up taking over. Crypto companies ought to detail their technology, e.g., whether their product is a proof-of-work or proof-of-stake blockchain, block size, transaction speed, reward mechanisms, steps for network security and whether or not the protocol is open-sourced. SEC staff further added that registration or qualification is not necessary in relation to crypto offerings that are not securities and are not an investment contract. The statement, however, failed to bring clarity to the question of what digital assets may be securities. #MarketRebound