Definition ∞ SEC jurisdiction limits define the boundaries of authority that the U.S. Securities and Exchange Commission (SEC) possesses over digital assets and related activities. These limits are primarily determined by whether a digital asset is classified as a security under existing law. The SEC’s jurisdiction does not extend to assets deemed commodities or currencies, leading to ongoing legal debates.
Context ∞ SEC jurisdiction limits are a central and contentious issue in the regulatory landscape of digital assets in the United States. Numerous lawsuits and policy statements address the scope of the SEC’s power, particularly concerning initial coin offerings and secondary market trading. Clarifying these limits is crucial for providing regulatory certainty to the digital asset industry.