The U.S’s Security and Exchange Commission (SEC) FinHub has published a framework for “Investment Contracts” Analysis of Digital Assets. Depending on the nature of a 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. The FinHub framework brings legal certainty by analysing whether a digital asset is offered and sold as an investment contract, and, therefore, is a security. The framework is not intended to be an exhaustive overview of the law, but rather, an analytical tool to help market participants assess whether the federal securities laws apply to the offer, sale, or resale of a particular digital asset. Crucially, this framework represents staff views and is not a rule, regulation, or statement of the Commission. The Commission has neither approved nor disapproved its content.
