Regulated Security

Definition ∞ A regulated security is a financial instrument that falls under the oversight of government regulatory bodies. These instruments, such as stocks, bonds, or certain derivatives, are subject to specific rules regarding issuance, trading, and disclosure. The purpose of regulation is to protect investors, maintain market fairness, and ensure financial stability. Compliance with these rules is mandatory for issuers and intermediaries.
Context ∞ In crypto news, the classification of digital assets as regulated securities is a central and contentious debate. Jurisdictions worldwide are applying existing securities laws to various tokens, leading to legal challenges and policy uncertainty. This regulatory scrutiny significantly impacts how digital assets are offered, traded, and perceived by institutional investors.