In 2025, the U.S. Securities and Exchange Commission (SEC) released updated guidance to clarify which crypto tokens are considered securities. This move aims to provide clearer regulatory frameworks for digital assets.
The SEC’s guidance introduces a three-pronged framework to assess whether a token qualifies as a security. This framework evaluates the investment of money, expectation of profits, and the efforts of others in the token’s value appreciation.
This clarification is significant for crypto projects and investors, as it determines the regulatory obligations for token issuers. Tokens classified as securities must comply with registration requirements, impacting how they are offered and traded.
The SEC’s move has been met with mixed reactions. Some industry participants appreciate the clarity, while others express concerns about the potential for increased regulatory burdens.
As the crypto industry continues to evolve, the SEC’s guidance serves as a critical step in establishing a more defined regulatory landscape for digital assets.
