Crypto

SEC Clarifies Token Buybacks No Longer Securities After Network Goes Live

Guavy AI Editorial Team Published September 28, 2026

The US Securities and Exchange Commission (SEC) has updated its cryptocurrency FAQ to clarify that announcing token buybacks after a network is operational does not constitute a 'necessary managerial effort' commitment, and therefore does not qualify as securities.

This update was made on September 28, according to Decrypt. The SEC's Division of Corporation Finance stated that once a network is operational, maintaining or upgrading it, promoting its existing functionalities, and expressing non-profit visions do not meet the Howey test.

However, if the network is not yet operational and the issuer promises returns or benefits from buybacks, it may still trigger securities laws. Lawyer Gabriel Shapiro described this aspect as 'beyond expectations.'

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