Securities Act Compliance

Definition ∞ Securities Act compliance involves adhering to the legal requirements set forth by securities regulations governing the issuance and trading of financial instruments. This includes rules regarding disclosure, registration, and investor protection. For digital assets, compliance determines whether a token is considered a security and how it must be regulated.
Context ∞ Securities Act compliance is a dominant and often contentious topic in the digital asset regulatory landscape. News frequently reports on enforcement actions, new guidance from regulatory bodies, and legal challenges that clarify the application of existing securities laws to cryptocurrencies and tokens. The ongoing debate about which digital assets constitute securities and how they should be treated remains a critical factor shaping market development and innovation.