The US Securities and Exchange Commission (SEC) explained how cryptocurrencies should disclose information about their activities in order to ensure transparency and not violate federal laws.

Minutes of crypto acts should explain in detail their business models in an understandable language, without excessive use of technical terminology or industry jargon. Companies should describe the current stage of development of their business and clearly define development prospects. Information must comply with public statements and advertising materials, including technical documentation and any official documents, explained SEC.

Crypto companies should indicate whether they will continue to conduct their business after launching a network or application, and, in the case of an affirmative response, describe this activity. If not, then tell about further steps and whether another organization will participate in the operations. The issuer is obliged to disclose how it generates profit and how he intends to receive income. It is also necessary to provide information whether the securities or cryptoactive will be used in the company’s work, plus describe the role of this cryptoactive in the network/application. In addition, it is recommended to indicate crypto companies:

  • Whether a team of developers is developing a network, application or cryptoactive, at what stage of development they are located, and in what terms the developers plan to deploy the network/application.

  • Stages of network development, applications or crypto acting, including the estimated terms and costs of resources, as well as a source of means for product development.

  • Details about infrastructure, software, management of cryptographic keys and functionality.

  • Description of licenses or intellectual property rights associated with technology.

  • The process of checking transactions, consensus mechanism, block size, transaction speed, transaction fees (gas for gas) and remuneration mechanism.

  • Measures taken to ensure network security or applications.

This week, SEC clarified that she does not consider stablecoins securities. In February, the regulatory department said that memcoirs also did not belong to the category of securities, but warned about the risks of investment in this type of tokens.