The Division of the US Securities and Exchange Commission of Corporation Finance released new personnel matters on 10 April which explains how the federal securities laws apply to registration and offering crypto-related effects.
The statement deals with a series of topics, including how companies should present information about their business activities, token design, governance, technical specifications and financial reporting.
Although it does not create new regulations, the document reflects the current expectations of SEC staff for how companies should prepare their archives. It also indicates a more open approach to crypto regulations under its new leadership.
Clear direction for registrants
The guidance focuses on the registrations under the Securities Act of 1933 and the Securities Exchange Act of 1934 and is intended to help entities involved in token launches or platforms built on blockchain infrastructure.
These archives may include registration forms such as Form S-1 for public offers, form 10 for reporting companies, form 20-f for foreign emennials and form 1-a for regulations A exemptions.
Companies are expected to clearly outline their income strategy, project mile posts and the technical framework behind all associated digital assets. If a crypto -active has a function within the company, such as engaging transactions, governance or access to services, that information must be described in clear terms.
The SEC also expects coordination between these descriptions and what is shared in promotional material such as white papers and developer documentation.
In cases where development is underway, the declaration of companies advises to outline important milestones, expected timelines, financing sources and any roles that the token or network will play as soon as they are launched.
This includes statements from consensus mechanisms, transaction costs and whether the network open-source or own software uses.
Disclosure requirements
The SEC has also established expectations for disclosure of investment risks, including token volatility, liquidity restrictions, legal classification and vulnerabilities of security.
For example, if the business model of a company depends on a blockchain of third parties or another external network, they must be described. The same applies to all schemes with market makers or preservators.
Publishing issues are required to reveal or have tokens of voting rights, profit -sharing mechanisms or repayment procedures and how those rights are transferred or amended. The document also requires more information about how tokens are made, whether the stock has been determined and whether the fortress or locking periods apply.
If a smart contract regulates token behavior, the code must be submitted as an exhibition and any updates must be reflected in future changes. In addition, companies must describe how token possession is followed, the tools needed to transfer assets and any reimbursements that are linked to those transfers.
Companies will also be obliged to disclose information about leadership and key staff, including persons or entities that may not have formal titles, but play a central role in decision -making. For trusts or violent products, disclosure must contain information about the sponsor and its officers.
Financial disclosures must follow the established accounting standards and the SEC encourages companies that are confronted with new reporting situations to consult her office of the main accountant.
Although it is non-binding, the guidelines of the staff offer a reference point for crypto-related entities that navigate registration. It reflects the increasing SEC attention for crypto markets as more companies try to operate within the public markets and attract capital through products based on blockchain.
