The updated FAQ expands on staff views released September 25, which clarified that liquid staking tokens for commodities are digital tools or commodities rather than securities. The SEC noted that for functional networks, activities such as software upgrades, system maintenance, and efforts to grow network usage do not constitute "essential managerial efforts" under the Howey test. These FAQs reflect the views of SEC staff and carry no legal force or effect.
Tuesday, October 20, 2026
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SEC Excludes Decentralized Token Buybacks from Securities Law in Updated FAQ
Crypto22 days ago
The U.S. Securities and Exchange Commission refined its recent crypto guidance to state that token buyback arrangements likely do not create investment contracts when no central party manages the process. This update responds to concerns raised by Miles Jennings, General Counsel at a16z crypto, who argued that prior agency wording could allow issuers to announce buyback programs to avoid securities regulations without making explicit legal promises to investors.
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