A securities law framework comprises the legal rules governing the issuance and trading of investment contracts. This framework, such as the US Securities Act of 1933 and the Securities Exchange Act of 1934, defines what constitutes a security and regulates offerings, disclosures, and market conduct. Its application to digital assets determines whether a cryptocurrency or token is subject to stringent registration and reporting requirements. Understanding this framework is critical for digital asset projects seeking to operate compliantly.
Context
The securities law framework is a highly debated topic in crypto news, with regulatory agencies like the SEC actively asserting jurisdiction over many digital assets. The Howey Test is frequently referenced in discussions to assess whether a digital asset qualifies as an investment contract. The lack of clear, tailored guidance for digital assets within existing securities laws creates uncertainty for issuers and market participants, driving ongoing calls for legislative clarity.
The SEC's universal ETP standard mandates the integration of digital assets into established financial compliance and custody frameworks, unlocking institutional access.
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