The SEC has published guidance with a detailed framework on whether a digital asset is offered and sold as an investment contract, and, therefore, is a security. Contact us if you have questions about the categorization of your digital asset.

“Blockchain and distributed ledger technology can catalyze a wide range of innovation.  We have seen these technologies used to create financial instruments, sometimes in the form of tokens or coins that can provide investment opportunities like those offered through more traditional forms of securities.  Depending on the nature of the digital asset, including what rights it purports to convey and how it is offered and sold, it may fall within the definition of a security under the U.S. federal securities laws.”

To view the full statement, visit SEC.gov.