SEC proposes new guidance applying securities laws to digital currencies

The U.S. Securities and Exchange Commission (SEC) is one step closer to establishing a clear regulatory framework for the cryptocurrency market after launching new guidance clarifying how securities laws will apply to certain cryptocurrencies and their related transactions.

According to the White House Office of Information and Regulatory Affairs (OIRA), the document is titled:

Federal securities laws apply to certain types of digital currencies and certain transactions related to them.

Although the details released are limited, an SEC spokesperson said the agency is considering issuing interpretive guidance based on a classification of digital tokens that would consider a currency’s characteristics, use and its behavior in the market to determine whether it is considered a security.

If adopted, these guidelines could help cryptocurrency companies understand how to register, operate and deal with investors within the United States.

It is important to note that guidance issued at the committee level carries greater regulatory weight than staff directives, but they do not reach the level of formal rules that require processes such as opening up public comment.

The move is part of agency chairman Paul Atkins’ efforts to establish a clearer regulatory framework for the cryptocurrency industry since taking office.

In a related context, the Commodity Futures Trading Commission (CFTC) also submitted a regulatory proposal to the White House on regulating the expected market.

The head of the agency explained that the new rules will clearly define the products that can be self-listed on the market and how they will be evaluated, given the growing interest in the sector from investors through platforms such as “Polymarket” and “Kalshi”.

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