Definition ∞ Covered Securities are specific types of investment instruments that are subject to federal securities laws, and thus generally exempt from certain state-level registration requirements. This classification impacts how these assets are offered, sold, and regulated across different jurisdictions. The term helps define the scope of regulatory authority.
Context ∞ The classification of digital assets as covered securities remains a central debate within the cryptocurrency regulatory environment. Determining whether a particular digital asset meets the criteria for a security has profound implications for issuers, exchanges, and investors regarding disclosure, registration, and trading rules. Regulatory bodies continue to provide guidance, shaping the future legal standing and market access for various digital tokens.
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