The SEC Encourages Issuers to Disclose Detailed Information When Issuing Cryptocurrency, Emphasizing Compliance

BlockBeats News, April 11th, the U.S. Securities and Exchange Commission (SEC) stated on Thursday that crypto companies issuing or processing tokens that may be deemed securities should provide detailed disclosure.

Before the second roundtable meeting (which will focus on trading), the SEC released its latest staff disclosure statement as part of its efforts to provide greater clarity on the application of federal securities laws in the crypto asset space. This non-binding guidance suggests that companies submitting disclosures should accurately describe their business and the role the token may play in their business. The statement notes that much of the content is based on observations of the company's previous disclosure information. The statement does not delve into which cryptocurrencies are defined as securities or what definitive guidance on this issue might look like.

The statement reads: "These offerings and registrations may involve securities of issuers related to networks, applications, and/or crypto assets. These offerings and registrations may also involve crypto assets held as part of an investment contract or bound by it (such crypto assets are referred to as 'underlying crypto assets')."

Many details include information on existing company disclosures observed by the SEC, such as whether these companies are developing crypto or blockchain networks, their development milestones, the purpose of the networks, and whether they are based on open-source or other technology stacks. The statement points out that previous disclosures also include details on token holders' rights and technical specifications.