SEC Clarifies Token Buyback Rules for Functional Crypto Networks

The U.S. Securities and Exchange Commission (SEC) has clarified its stance on token buybacks in functional crypto networks.

According to the SEC's updated FAQ, a non-functional network ties buyback promises to investor returns, which would be considered a securities concern.

However, for functional, decentralized systems with no central control, buyback announcements are not considered essential managerial efforts promises.