EddieJayonCrypto
11 Apr 25
The US Securities and Exchange Commission's Division of Corporation Finance has released new staff views on how federal securities laws apply to the registration and offering of crypto-related securities. The guidance covers various topics, including how companies should present information about th...
The US Securities and Exchange Commission's Division of Corporation Finance has issued new staff views on how federal securities laws apply to the registration and offering of crypto-related securities. The guidance covers a wide range of topics, providing clearer direction for registrants and focusing on filings under the Securities Act of 1933 and the Securities Exchange Act of 1934. It intends to assist entities involved in token launches or platforms built on blockchain infrastructure. The guidance outlines expectations for disclosures on investment risks, token creation, ownership tracking, and financial disclosures. It emphasizes the need for companies to clearly outline their revenue strategy, project milestones, technical framework behind digital assets, and align descriptions with promotional materials like white papers and developer documentation. Moreover, the SEC expects firms to disclose details about how tokens are created, voting rights, profit-sharing mechanisms, redemption procedures, vesting or lock-up periods, smart contract governance, transaction fees, and token ownership tracking. Financial disclosures must adhere to established accounting standards, and firms facing novel reporting situations are encouraged to consult the SEC's Office of the Chief Accountant. The issued guidance serves as a reference point for crypto-related entities navigating registration and reflects the SEC's increasing attention to crypto markets as firms seek to operate within the public markets and raise capital through blockchain-based products.