The United States Securities and Exchange Commission (SEC) has issued an interpretive release on how federal securities laws apply to crypto assets and related transactions. The Commodity Futures Trading Commission (CFTC) indicated it will administer the Commodity Exchange Act consistent with the SEC’s interpretation.

We summarize the SEC’s framework and highlight its discussion of the treatment of protocol mining and staking, wrapping structures, and certain covered airdrops under federal securities laws in this alert.

About DLA Capital Markets and Public Company Advisory Group

DLA Piper enables issuers and underwriters to execute complex securities transactions wherever in the world they do business. We offer nuanced approaches to financings across equity and debt capital markets, alternative public offerings (de-SPACs, reverse mergers and direct listings) and other transformative corporate transactions. Attorneys in our Chambers-ranked corporate governance practice act as outside corporate and securities counsel to a wide range of reporting companies, guiding clients through securities offerings and helping them navigate nuanced disclosure, governance and compliance matters under SEC, Nasdaq and NYSE rules and regulations. Boards of directors also turn to us in connection with complex transactions, special investigations and challenging risk oversight matters. Please visit our Capital Markets and Public Company Advisory page and Market Edge blog for more information.