SEC Issues Guidance on Crypto Securities Registration: What Companies Need to Know

On April 10, 2025, the SEC's Division of Corporation Finance issued guidance to clarify registration and disclosure requirements for companies offering crypto-related securities. This guidance helps companies understand what the SEC expects regarding disclosures about their business operations, token design, and financial reporting, as required under the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC requires companies to provide detailed information on their revenue strategies, project milestones, and the technical aspects of their projects, including how transactions are validated and how the network is governed. Companies must also disclose risks related to volatility and liquidity, and provide details on token rights, creation, and smart contract governance. Financial disclosures must follow standard accounting practices. This guidance highlights the SEC's increased attention to the crypto market and aims to ensure transparency and investor protection as more firms explore blockchain-based products and capital-raising ventures.