The Division of Corporation Finance of the U.S. Securities and Exchange Commission (SEC) has issued new guidance on how federal securities laws apply to cryptocurrencies, and how projects are expected to disclose information regarding their digital assets.
🔍 The document places particular emphasis on:
Assessing whether a token qualifies as a security under the criteria of the Howey Test
The requirement for full disclosure, covering everything from project structure to associated risks and governance
Transparency in tokenomics and the economic incentives offered to participants
The obligation to regularly update investors, in a manner consistent with traditional public markets
💬 An SEC representative stated:
“Participants in the crypto industry must understand: transparency is not a suggestion — it is the foundation of a reliable market.”
The new framework is expected to increase regulatory pressure on Web3 projects, particularly those that have previously marketed their tokens as “utility tokens” in an effort to avoid classification as securities.
At the same time, there is growing momentum behind calls for dedicated regulatory frameworks for digital assets — to ensure that innovation is not constrained by legal models designed for traditional investment instruments.
