SEC Clarifies Digital Asset Regulations with New Token Guidance

The US Securities and Exchange Commission (SEC) has issued new FAQs on digital assets, providing clarity on how its March interpretive release applies to token functionality and staking.

The guidance emphasizes that once a network is functional, services to maintain or enhance it do not constitute 'essential managerial efforts' under the Howey test, according to Eleanor Terrett's Twitter post.

This clarification has significant implications for compliance in the crypto industry, as it helps define the regulatory landscape for token management.