# SEC

> The US Securities and Exchange Commission. The American regulator that decides whether a token counts as a security.

Canonical URL: https://fudfomo.co/glossary/sec
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

The Securities and Exchange Commission, or SEC, is the US regulator for securities markets. It has taken an active role in crypto, particularly around whether tokens count as securities under American law.

Companies that want to sell or list tokens to US investors often have to argue why their tokens are not securities or register them properly. SEC enforcement actions have shaped how the crypto industry handles fundraising, listings, and disclosures.

## Regulatory context

The SEC's stance on individual tokens can change with new leadership. Court decisions also play a major role in defining the boundaries.

## Related terms

- [Securities](https://fudfomo.co/glossary/securities): A regulated category of financial instrument, like shares or bonds. Tokens that meet the test are subject to strict rules.
- [Howey Test](https://fudfomo.co/glossary/howey-test): A US legal test for deciding whether something counts as an investment contract, and so a security.
- [ICO](https://fudfomo.co/glossary/ico): Initial coin offering. An early sale where a project raises money by selling its new token.
- [FCA](https://fudfomo.co/glossary/fca): The UK's Financial Conduct Authority. The regulator that authorises crypto firms in the UK.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co