Federal Securities

Definition ∞ Federal securities are financial instruments subject to regulation under United States federal securities laws. These include stocks, bonds, and various investment contracts, among others. The classification dictates the legal requirements for their issuance, trading, and disclosure to investors. This designation carries significant legal implications.
Context ∞ The classification of digital assets as federal securities is a central point of contention in cryptocurrency regulation. News reports frequently discuss how the Howey Test is applied to various tokens to determine their legal status. This determination significantly impacts how projects operate and how exchanges list digital assets. The regulatory landscape continues to evolve on this matter.