Crypto asset trading platform operators should prepare to comply with securities regulations if the crypto assets traded are securities.

Key Points:

..Finding that the digital assets traded on the BitFunder platform were securities, the SEC applies the securities regulatory framework to BitFunder and conclude that BitFunder and its operator operated an unregistered securities exchange.

..Individuals operating digital asset trading platforms may be held individually accountable for the platforms’ violations of the US securities laws under the control person liability provision.

..In a statement issued by two divisions, the SEC staff reiterates that if a platform offers trading of digital assets that are securities and operates as an "exchange," as defined by the federal securities laws, the platform must register with the SEC as a national securities exchange or be exempt from registration.