Digital Asset Securities

Definition ∞ Digital asset securities are digital assets that meet the legal definition of a security, typically subject to the same regulatory oversight as traditional financial instruments. Their classification depends on factors such as whether they represent an investment contract, ownership share, or debt claim. Issuers of these assets must comply with securities laws regarding registration, disclosure, and trading. This distinction is critical for determining regulatory jurisdiction and investor protections.
Context ∞ The classification of digital assets as securities remains a central and frequently reported legal debate in the crypto world, particularly concerning various cryptocurrencies and tokens. Regulatory bodies globally are providing guidance and taking enforcement actions to clarify which digital assets fall under securities laws. News often highlights court rulings and regulatory statements that significantly impact market operations and asset issuance strategies.