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Securities-Like Standards

Definition

Securities-like standards refer to regulatory expectations and requirements applied to digital assets that exhibit characteristics similar to traditional securities. These standards typically involve obligations related to investor protection, transparency, disclosure, and market conduct, mirroring those for stocks, bonds, or other investment contracts. Regulators assess factors such as the expectation of profit from the efforts of others and common enterprise to determine if a digital asset warrants this classification. Applying these standards aims to safeguard investors and maintain market integrity.