SEC Issues New Guidance Recommending Detailed Disclosures for Crypto Tokens

The U.S. Securities and Exchange Commission (SEC) announced that crypto companies dealing with tokens potentially classified as securities must provide detailed disclosures. This comes ahead of the SEC's roundtable focused on trading, aimed at clarifying federal securities laws concerning crypto assets.

Companies should clearly describe their operations and the role of their tokens.
The guidance is based on observations of previous disclosures by existing companies.
Disclosures should include business development milestones and technical specifications.
The statement emphasizes that it is nonbinding and has no legal effect.
Previous statements have addressed topics like stablecoins and memecoins.

No specific cryptocurrencies were identified as securities in the statement.