Definition ∞ SEC compliance refers to adhering to the rules and regulations set forth by the U.S. Securities and Exchange Commission, an independent agency responsible for protecting investors and maintaining fair markets. For entities operating in the digital asset space, this involves ensuring that their offerings, operations, and disclosures meet the legal requirements for securities. Failure to comply can result in significant penalties.
Context ∞ SEC compliance is a highly prominent and often contentious topic in cryptocurrency news, particularly concerning the classification of digital assets as securities. Companies and projects frequently navigate complex legal interpretations to avoid enforcement actions. The ongoing regulatory scrutiny from the SEC significantly shapes the development and market access for digital asset products and services in the United States.