The Securities and Exchange Commission (SEC) is an independent U.S. federal government regulatory agency responsible for protecting investors and the US securities markets. SEC is very active in the crypto area where it has already handed out heavy fines (e.g., $30 Million fine for Blockchain Credit Partners that offered and sold securities in unregistered offerings). SEC is mainly looking at projects to see if a particular token used should be in fact classified as a security. This would mean a need for registration with the SEC and other requirements.