SEC Spells Out Crypto Securities Guidance

The US Securities and Exchange Commission (SEC) has released new guidance on when crypto assets can fall under federal securities laws. The update, which took effect on September 25, covers token sales, staking receipt tokens, buybacks, and network upgrades.

The SEC's Division of Corporation Finance issued the guidance, building on its March 2026 Interpretive Release. According to the document, a crypto asset may be treated as part of an investment contract when buyers invest money with the expectation of profits from the essential managerial efforts of others, based on the Howey test.

The SEC clarified that promoting a crypto network's current uses or future features would generally not be enough to create an investment contract. However, if an issuer makes clear promises about future work and links those efforts to potential profits for buyers, such statements could create a reasonable expectation of profit.