SEC crypto FAQ addresses token buybacks, network upgrades and promises of profit
60-second summary
The SEC’s crypto FAQ clarifies that promoting a network’s current uses does not constitute an expectation of profit, while it also addresses token buybacks and network upgrades, stating such activities may still be scrutinized under securities law; this guidance signals tighter regulatory focus, prompting projects to reassess marketing and token‑omics to avoid enforcement risk.
Promoting a network’s current uses generally would not create an expectation of profit, SEC staff said.