Yesterday the US Securities and Exchange Commission (SEC) published guidance on the application of disclosure requirements to crypto-asset securities issuances. It acknowledged that this is an interim step while the SEC Crypto Task Force works on comprehensive guidance. Issuers are expected to comply for the issuance of debt or equity, or a crypto-asset token which is an investment contract at the point of issuance.
Commissioner Peirce has previously noted that many cryptocurrency tokens might be investment contracts subject to securities laws at the point of issuance, but subsequently evolve into commodities. Precisely how that transition is assessed remains to be seen.
The latest guidance might be described as a layman’s guide of what is expected in an S-1 filing, which is made for a securities issuance. However, there are a few points that will particularly impact crypto projects.
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