$PUMP Surges 18% as SEC Clarifies Digital Asset Stance, Buybacks Continue

The US Securities and Exchange Commission (SEC) has clarified its stance on digital assets, sparking optimism in the market. According to the SEC, it uses the classic Howey test to determine when crypto assets and token sales constitute securities under federal law.

The agency noted that the classification mostly focuses on economic reality, rather than terminology. Digital assets fall under securities regulation if investors anticipate profits driven by managerial effort of founders.

This clarification had a significant impact on PUMP's market, with the altcoin recording an 18% surge in price. The altcoin rebounded from its $0.0038 slip, reclaimed and flipped $0.004, and rallied to a daily high of $0.0046.

The increased investor interest led to fresh capital flows into PUMP's network, with USD Inflows rising to $24 million. The project has also continued with its buybacks, spending $1.6 million in buying 398 million tokens.