CryptoCrime Watch — Tracking Fraud · Protecting Investors

Court Clarifies Securities Status of Secondary-Market Token Trades

The ruling distinguishes between primary offerings and arms-length resale transactions.

By Elena Marsh, Senior Enforcement Correspondent· May 12, 2026 at 8:43 AM· 6 min read
Court Clarifies Securities Status of Secondary-Market Token Trades
Court Clarifies Securities Status of Secondary-Market Token Trades

A federal district court on Monday issued a closely watched decision clarifying the securities status of secondary-market token trades, distinguishing between primary offerings and arms-length resale transactions in a way that is expected to influence both pending enforcement cases and industry compliance practices.

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