Definition ∞ Securities law scope defines the range of financial instruments and activities that fall under the purview of securities regulations. In the digital asset context, this involves determining whether a particular cryptocurrency, token, or blockchain-based investment constitutes a “security” and is thus subject to registration, disclosure, and other legal requirements. This determination is critical for projects seeking to launch tokens and for exchanges facilitating their trade. It directly impacts regulatory obligations.
Context ∞ The securities law scope as applied to digital assets is a highly contested and evolving area, with significant implications for the entire industry. A key debate centers on the “Howey Test” and its applicability to various token structures and distribution methods. Future legal interpretations and legislative efforts are expected to provide more specific criteria for classifying digital assets, potentially leading to bespoke regulatory frameworks.
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