24/7 Cryptocurrency News

US SEC Division Releases Guidance On Disclosure Requirements For Crypto Securities

The SEC has released fresh disclosure guidance for crypto assets that fall under the umbrella of securities amid a gale of sweeping changes
Published by
US SEC Division Releases Guidance On Disclosure Requirements For Crypto Securities

Highlights

  • A US SEC division has published disclosure guidance for crypto securities.
  • The SEC recommends clear disclosure on business descriptions, risks, and technical specification.
  • New brass is expected to take over the helm of affairs at the SEC following Paul Atkins confirmation.

As the US SEC hurtles toward regulatory clarity, a division has published disclosure guidance for crypto assets that are securities. The SEC’s Division of Corporation Finance shared the guidance for issuers urging clear disclosures for business description, risk factors, and financial statements.

Advertisement

SEC Drops Fresh Guidance For Issuers Of Crypto Asset Securities

The US SEC’s Division of Corporation Finance has released disclosure requirements for securities in crypto-asset markets. According to the press release, the Division notes that disclosure requirements are mere guidance for issuers designed to smoothen the curve for market participants.

Under the requirements, the US SEC urges securities issuers to describe their businesses in clear language. Per the guidance, the issuers should disclose information on revenue generation, timelines for network development, procedures for validating transactions, and network governance procedures.

Furthermore, the US SEC makes a case for specifying risk factors relating to the issuer’s business operations. Other risk disclosures will relate to the security, its volatility, liquidity, and supply.

The Division specifies a “materially complete description” of the securities with issuers urged to spell out the rights of holders. Per the guidance, information around the technical specifications revolving around the crypto asset divisibility and smart contract functionalities.

The Division’s guidance comes on the heels of the US Senate confirming Paul Atkins as SEC Chair. According to the division, the guidance will serve as a stopgap for issuers pending proper regulations by the Crypto Task Force.

Advertisement

Securities Watchdog Provides Securities Clarity For Cryptocurrencies

The Crypto Task Force, led by Commissioner Hester Pierce, is spearheading the push for disclosure requirements for securities issuers. However, Pierce declared support for the new guidance by the Division of Corporation Finance.

“We’re not saying your crypto assets are securities, but if they are (and we’re working on clarifying that) or your company is involved in the cryptocurrencies, here’s some disclosure guidance,” said Pierce on X.

The disclosure guidance extends to financial statements, exhibits, and details of significant employees.

The US SEC has rolled out an avalanche of securities clarifications since the start of the year. Last week, the SEC clarified that dollar-backed 1:1 stablecoins are not securities since they are used primarily for payments.

Previously, the US SEC exempted proof-of-work mining from securities obligations. In a remarkable development, the SEC clarified that securities regulations do not apply to memecoins.

 

 

Share
Aliyu Pokima

Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he's not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Bitcoin News

Arkham Uncovers $5 Billion in Untouched Bitcoin From Germany’s Movie2K Seizure

Arkham Intelligence has identified 45,000 Bitcoin (BTC), valued at nearly $5 billion, that remains untouched…

September 7, 2025
  • 24/7 Cryptocurrency News

Ethereum Spot ETFs Record $447 Million in Outflows Amid Crypto Market Decline

Ethereum ETFs faced a sharp investor pullback this week, shedding nearly half a billion dollars…

September 6, 2025
  • 24/7 Cryptocurrency News

World Liberty Financial Discloses Reason for Blacklisting 272 Wallets

World Liberty Financial (WLFI) has confirmed that it blacklisted 272 wallets and explained why it…

September 6, 2025
  • 24/7 Cryptocurrency News

September 50 BPS Fed Rate Cut Odds Climb Ahead of CPI, PPI Data

Traders are beginning to price in the possibility of a 50 basis points (bps) Fed…

September 6, 2025
  • 24/7 Cryptocurrency News

Michael Saylor Spotlights Strategy’s Performance Following S&P 500 Snub

Michael Saylor highlighted Strategy’s outperformance after the company was excluded from the S&P 500. The…

September 6, 2025
  • 24/7 Cryptocurrency News

Donald Trump Shortlists Hassett, Warsh, and Waller for Fed Chair

U.S. President Donald Trump has revealed his shortlist of candidates who could potentially replace Fed…

September 6, 2025