What it is
Issued by regulatory bodies like the SEC, a no-action letter is a response to an inquiry from a company or individual seeking guidance on a proposed course of action. While not a formal legal ruling or exemption, it signifies the staff's current enforcement position based on the facts presented. It provides a degree of comfort that the regulator will not pursue charges if the activity proceeds as described.
In crypto, companies often seek no-action letters from the SEC to determine if their digital asset offerings or services would be considered securities. These letters can influence how projects structure their token sales or business models to avoid regulatory pitfalls. However, they are non-binding and specific to the facts presented, not setting a broad precedent for the industry.
Why it matters
These letters offer insight into a regulator's stance on specific crypto activities, helping you understand potential risks or legitimacy.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice