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.
Context ∞ The debate over applying securities-like standards to various digital assets is a central theme in crypto news and regulatory discourse globally. Jurisdictions are actively working to define which digital assets fall under existing securities laws and which require new regulatory approaches. Clarity on these standards is crucial for project developers, exchanges, and investors to operate within legal boundaries.