The U.S. Securities and Exchange Commission (SEC) has updated its Frequently Asked Questions (FAQs), clarifying that token buyback programs conducted on fully functional and decentralized crypto networks, as well as certain staking or promotional activities, are generally not considered investment contracts under securities laws. This aligns with prior guidance from the Commodity Futures Trading Commission (CFTC) and comes after the failed vote on the CLARITY Act.
Which assets are affected
BTC, ETH, SOL, AVAX, NEAR, DOT, ADA, LINK, INJ, SUI, TON, APT, SEI, TIA, ONDO, PENDLE, FET, RNDR, ARB, OP, MATIC, ATOM, STX, FTM, KAS, XRP, BCH, LTC, TRX
Long/Short Views
Bulls believe this clarification significantly reduces regulatory uncertainty, providing compliance space for native token buybacks and staking mechanisms in DeFi protocols. It is expected to encourage more projects to adopt similar mechanisms and attract institutional participation. Bears point out that the SEC still retains enforcement power over centralized entities or networks that have not yet achieved sufficient decentralization. The actual boundaries of enforcement remain blurry, and the market may experience renewed volatility due to future case-by-case interpretations.