The SEC has issued new guidelines requiring crypto projects to strengthen their disclosure of token information

The Securities Exchange Commission (SEC) issued a statement on Thursday recommending that crypto companies that may be involved in securities tokens provide more detailed disclosures. The guidance emphasizes the need for companies to clearly state their business models and the specific role of tokens, but does not clearly define which cryptocurrencies fall under the category of securities.
The optional statement said disclosures should include key information such as whether a company is developing a crypto or blockchain network, development milestones, network usage, and technical architecture (e.g. whether it is based on open-source technology). The SEC said the recommendations were based on observations of past corporate disclosures, including details such as token holder rights and technical specifications.
The statement specifically mentions additional disclosures for token assets (i.e. tokens that could constitute securities) involving "investment contracts". The guidance is part of the SEC's efforts to clarify how federal securities laws apply to crypto assets, and is intended to lay the groundwork for the follow-up work of its newly established crypto task force. The SEC also stressed that the statement does not constitute a formal rule and is "not legally binding".