Federal Securities Laws

Definition ∞ Federal Securities Laws are a body of statutes and regulations in the United States designed to protect investors and maintain fair, orderly, and efficient markets. These laws govern the issuance, trading, and disclosure requirements for securities, including stocks, bonds, and certain investment contracts. Their application to digital assets is a central point of regulatory discussion, determining how various crypto tokens are classified and supervised. Compliance with these laws is critical for entities operating within the US financial system.
Context ∞ The Securities and Exchange Commission (SEC) actively applies federal securities laws to digital assets, asserting jurisdiction over many crypto tokens deemed investment contracts. This approach often leads to enforcement actions against projects and exchanges for unregistered offerings or trading. The industry seeks clearer guidance on how these established laws apply to novel blockchain technologies, aiming for a more predictable regulatory environment.