The U.S. Securities and Exchange Commission (SEC) has announced new guidance regarding the application of federal securities laws to certain crypto assets. This update follows similar guidance issued by the Commodity Futures Trading Commission (CFTC) last week.
In its latest update to frequently asked questions, the SEC clarified that its interpretations are non-binding and do not create new legal obligations. The guidance focuses on how digital asset products are evaluated under the Howey test for investment contracts.
Notably, the SEC indicated that token issuers could engage in buyback programs if the crypto system is functional and lacks a central party, thus not qualifying as an investment contract. Additionally, the agency specified that staking receipt tokens may not always be classified as securities.
This guidance comes in the wake of the Senate's failure to pass the CLARITY Act, which aimed to establish clearer regulatory frameworks for crypto markets. SEC Chair Paul Atkins and CFTC Chair Michael Selig emphasized their commitment to addressing crypto regulation in light of legislative inaction.
In related news, SEC Commissioner Hester Peirce, known as "Crypto Mom" for her pro-crypto stance, announced her resignation effective October 2. Her departure leaves the SEC leadership in the hands of Atkins and Commissioner Mark Uyeda, as the search for her replacement continues.