SEC Staff Clear Token Buybacks on Working Networks, With a Warning for Unfinished Ones

SEC Staff Clear Token Buybacks on Working Networks, With a Warning for Unfinished Ones

New FAQs from the SEC's Division of Corporation Finance also say some liquid staking tokens can count as digital commodities and that funding upgrades to a working network isn't the kind of effort that makes a token a security.

SEC Clarifies Crypto Asset Rules for Staking Tokens and Projects

SEC staff issued updated crypto guidance clarifying how staking receipt tokens, functional networks, buybacks, and marketing statements may be evaluated under federal securities laws.

SEC Staff Draws a Line Between Token Buybacks and Profit Promises

New SEC staff FAQs explain when token buybacks and network upgrades are routine maintenance, and when issuer promises still matter.

SEC crypto FAQ addresses token buybacks, network upgrades and promises of profit

Promoting a network’s current uses generally would not create an expectation of profit, SEC staff said.