SEC updates criteria for investing in digital tokens

The Securities and Exchange Commission (SEC) has updated the criteria for investing in digital tokens and providing digital asset custodial services to protect investors and support the use of digital technology for national development.

Key Takeaways

• The SEC has updated criteria for investing in digital tokens to align with product risks and promote the use of digital technology in fundraising.
• The criteria include supervising the issuance of investment tokens, supporting custodial wallet provider businesses, and requiring permission for digital asset operators to engage in other businesses.
• The announcement specifying the updated criteria will be effective from January 16, 2024, aiming to raise the quality and reliability of the overall digital asset market.

The updates include removing investment restrictions on certain types of digital tokens, creating criteria for custodial wallet…