SEC Staff Says Token Buybacks Don't Make Crypto a Security—If the Network Works
60-second summary
SEC staff guidance states that announcing a token buyback on a functional network does not automatically render the token a security, clarifying that the buyback alone isn’t a promise of profit tied to the issuer’s efforts. The clarification narrows the scope of securities‑law applicability, potentially easing compliance burdens for projects while still leaving broader token offerings subject to regulation.
New SEC staff guidance says announcing a token buyback on a functional network isn't a promise that turns the token into a security, a shift one attorney says makes securities laws look "opt-in."