SEC Jurisdiction

Definition ∞ SEC jurisdiction refers to the legal authority of the U.S. Securities and Exchange Commission over securities markets and participants. For digital assets, this authority primarily applies to tokens deemed investment contracts under the Howey Test, classifying them as securities subject to federal securities laws. The SEC’s oversight extends to initial coin offerings, cryptocurrency exchanges, and other entities involved in the issuance, trading, or custody of such digital assets. Its role is to protect investors, maintain fair markets, and facilitate capital formation.
Context ∞ A prominent discussion involves the ongoing legal disputes between the SEC and various cryptocurrency firms regarding the classification of specific digital assets as securities. These cases are setting precedents for how existing securities laws apply to novel blockchain technologies and shaping the future regulatory landscape for the crypto industry in the United States. Clarity on the scope of SEC jurisdiction remains a critical factor for market participants.