What Is a “No-Action” Letter from the SEC regarding Crypto Assets?

A "no-action" letter is a formal response from the SEC staff stating that, based on the facts and representations presented by the requestor, the staff will not recommend enforcement action to the Commission if the proposed conduct is undertaken. In the context of crypto assets, companies seek these letters to gain regulatory clarity on whether their token or activity constitutes a security or requires registration.

While not a binding rule or a legal conclusion by the SEC itself, it provides a strong indication of the staff's current enforcement position and is highly valued for mitigating regulatory risk.