MORE: The SEC uses the classic Howey test to determine when crypto assets and token sales constitute securities under federal law, focusing on economic reality rather than terminology. Assets fall under securities regulation if investors reasonably expect profits driven by the managerial efforts of founders or central entities. Issuers offering crypto asset securities must provide tailored disclosures beyond traditional models. This new guidance mandates clear reporting on token mechanics, network governance, cybersecurity vulnerabilities, concentration of token ownership, valuation methods, and promoter involvement. Absolutely massive for transparency and legitimization of this industry. This new guidance also distinguishes basic network validation from pooled staking services, liquid staking tokens, or yield-bearing stablecoins, which carry a heightened risk of being classified as investment contracts. Additionally, traditional assets tokenized on a blockchain remain fully subject to standard securities registration and compliance rules. A security onchain is still a security, big surprise there… I digress. This is absolutely massive for clarification of the rules, and the SEC is coming in big time post-CLARITY failure. Absolutely love to see it.