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My token has security-type risk. What should I do?

At a glance

Likely security-type risk

On ClarityCheck this label is only used with a strong official basis. Today that means tokenized fund shares (e.g. BUIDL, USYC, USDY, USTB) whose own documents treat them as securities.

• Tokens with this status5 of the top 100
• Regulator (if enacted)SEC
• Checklist7 practical steps

Practical checklist

1. Check eligibility and transfer limits. Many tokenized funds are only for qualified or non-US investors and restrict who can hold or receive them.
2. Read the offering documents from the issuer, not a third-party summary. See the disclosure reader.
3. Securities law protections and limits apply. Ask a qualified professional about your situation.
4. Keep good records. The IRS treats digital assets as property, so sales and swaps can be taxable whatever the token's legal status. IRS: Digital assets ↗
5. Check where you hold it. Use the exchange safety checker to see an exchange's licences, enforcement history and reserves.
6. Know your custody. Coins on an exchange aren't FDIC or SIPC insured. See the custody explainer.
7. Follow it. Add the token to your watchlist and check Alerts. Statuses change when courts, regulators or Congress act.

Tokens with this status

USYCUSYCUSDYUSDYBUIDBUIDLEURSEURSAFOUSTBUSTB