New SEC Staff Statement Calls for More Disclosure on Crypto Tokens
According to the agency, the SEC staff's statement is based on an analysis of previous disclosures.
Author: Nikhilesh De | Edited by Aoyon Ashraf , April 10, 2025, 10:05 PM
About what I know:
- The US Securities and Exchange Commission (SEC) recommends that cryptocurrency companies provide detailed information about whether their tokens can be considered securities.
- The SEC's latest guidance emphasizes the need for clarity regarding the business operations and functions of tokens, but does not specify which cryptocurrencies are considered securities.
- The non-binding statement is part of the SEC's efforts to clarify how federal securities laws apply to cryptoassets ahead of the launch of its new cryptocurrency task force.
The U.S. Securities and Exchange Commission (SEC) announced on Thursday that crypto companies that issue or manage tokens that could potentially be securities must provide detailed information.
The Securities and Exchange Commission (SEC) has issued a new disclosure statement ahead of its second trading roundtable “as part of an effort to provide greater clarity regarding the application of federal securities laws to cryptoassets.”
The non-binding guidance recommends that companies filing disclosures clearly state what their business does and what role their tokens play in that process. Much of this is based on observations of what companies have previously disclosed, the statement said. The document does not provide a detailed analysis of which cryptocurrencies might be classified as securities or what the final guidance on the matter might look like.
“These offers and registrations may include shares or debt instruments of issuers whose activities are related to networks, applications and/or cryptoassets. These offers and registrations may also concern cryptoassets offered as part of or the subject of an investment contract (such cryptoassets are referred to as “subject cryptoassets”),” the statement says.
Much of this information includes disclosures from existing companies that the SEC says it monitors, including information about whether the companies are developing crypto or blockchain networks, the milestones of their development, what the network is being built for, and whether it will be based on open source or other technology platforms.
The statement also mentioned that previous disclosures included information about token owner rights and technical specifications.
The statement notes that the Division of Corporate Finance was simply setting out its views ahead of the SEC’s new cryptocurrency task force to clearly define where its jurisdiction lies in the digital asset space. A footnote, like previous staff statements, emphasizes that the statement is not formal guidance or rulemaking and “has no legal force or effect.”
Previous statements from staff led by acting chairman Mark Weda have focused on stablecoins and memecoins.
More: SEC staff to review Biden-era crypto guidance amid regulatory overhaul
