Crypto glossary
SEC (Securities and Exchange Commission)
The SEC is the US federal agency that regulates securities markets and decides, case by case, when a crypto asset or offering falls under securities law.
The Securities and Exchange Commission was created in 1934 to protect investors and oversee stock exchanges, brokers, investment funds and public companies. It writes rules, approves products such as exchange-traded funds and brings civil enforcement cases when it believes securities laws have been broken.
In crypto, its role depends on whether a token is treated as a security, a question usually answered with the Howey test. The SEC sued Ripple in 2020 over XRP sales, pursued many ICO issuers and several exchanges, and in January 2024 approved the first spot bitcoin ETFs in the United States. In 2025, under new leadership, it dropped several exchange cases and set up a task force to draft clearer crypto rules.
Its approach has shifted with each commission, so past actions are not a reliable guide to future policy. Its decisions on ETFs, listings and token offerings move markets well beyond the United States.
Example
When the SEC approved spot bitcoin ETFs in January 2024, US investors could gain bitcoin exposure through an ordinary brokerage account for the first time.
Related terms
Latest articles on SEC
- What Are Prediction Market ETFs? How They Work, SEC Delays, and Key Risks Explained
- SEC Enforcement Actions Drop 24% to 348 Amid Crypto Scrutiny
- Formation Notifies SEC of Plan for First Tokenized Securities Venue on Solana, Galaxy Expected at Launch
- Digital Chamber Pushes SEC for Regulatory Flexibility in Tokenized Securities and Blockchain Records
- Canton CC Rises After SEC Digital Commodity No-Action Letter
