Securities Exchange Rule

Definition ∞ A Securities Exchange Rule refers to regulations established by the U.S. Securities and Exchange Commission or self-regulatory organizations governing the operation of securities exchanges and the trading of securities. In the digital asset context, these rules are applied to determine how cryptocurrencies or other digital assets are classified and traded. Compliance with these rules is essential for exchanges and financial institutions offering digital asset products. They ensure fair and orderly markets.
Context ∞ The discussion surrounding Securities Exchange Rules in crypto frequently involves their application to various digital assets, particularly in determining whether a token constitutes a security. A key debate concerns adapting existing regulatory frameworks to the novel characteristics of blockchain technology and decentralized markets. Watching for new guidance, enforcement actions, and legislative proposals provides immediate context for understanding the regulatory environment for digital assets.