SEC Clarifies Token Buyback Rules

The Securities and Exchange Commission (SEC) has issued new guidance on token buybacks, development, and marketing activities in the crypto market.

This clarification, shared by CryptoTwitter commentator @SolanaFloor, indicates that teams can continue to develop and promote functional networks without these actions being classified as managerial efforts tied to investment contracts.

The SEC's fresh rules could significantly alter operational strategies for crypto projects moving forward.

Ongoing development and token buybacks do not automatically tie to security classifications once a network is functional, according to the latest guidance.