- The SEC has issued new guidance urging crypto securities issuers to provide clear disclosures on business operations, risks, and technical details.
- This move aims to boost transparency as regulators push for greater clarity in the evolving digital asset space.
In a significant step toward regulatory transparency, the U.S. Securities and Exchange Commission (SEC) has unveiled fresh guidance for crypto assets that qualify as securities. The new directives, issued by the SEC’s Division of Corporation Finance, are designed to guide issuers in navigating disclosure obligations amid the rapidly evolving digital asset landscape.
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This latest move comes as Washington grapples with how best to regulate the booming crypto sector. The SEC’s guidance, while not legally binding, offers issuers a clear framework for disclosing crucial information — from business operations and revenue models to the inner workings of blockchain protocols and smart contracts.
The Division emphasized the importance of “materially complete” disclosures, urging issuers to describe network development timelines, transaction validation mechanisms, governance procedures, and revenue strategies in plain language. Crucially, the guidance also outlines detailed risk factors, including issues around liquidity, price volatility, and asset supply — common sticking points for both investors and regulators.
Further adding to the document’s scope, the SEC suggests issuers disclose technical specifications like token divisibility and smart contract features. The guidance also extends to financial statements, key personnel details, and exhibits — signaling a holistic push toward transparency.
The timing is notable. Just days after Paul Atkins was confirmed as the new SEC Chair, the agency appears to be ramping up its regulatory offensive. The guidance also has backing from key figures such as Commissioner Hester Pierce, who reiterated that while not all crypto assets are securities, firms should be prepared in case they are.
“We’re not saying your crypto assets are securities, but if they are—or if your business deals with them—this guidance helps you disclose appropriately,” said Pierce on X.
The SEC’s latest move underscores a broader shift toward proactive crypto oversight. In recent weeks, the agency has clarified that stablecoins pegged 1:1 to the U.S. dollar aren’t securities and exempted proof-of-work mining and memecoins from securities regulation. With more guidance likely on the horizon, the message is clear: the era of regulatory ambiguity in crypto is drawing to a close.