SEC Tightens Token Buyback Guidance Amid Record $638M Spending

The US Securities and Exchange Commission (SEC) has updated its guidance on token buybacks, clarifying that a decentralized system must have no central party to avoid being treated as a promise to manage the token's value.

This change affects many crypto projects that use buybacks while still giving people or committees some control over how those purchases happen. The SEC staff emphasized that even if a project has spent millions buying its token, the question remains: who actually controls the buying process?

The updated guidance comes as token buybacks have become increasingly important across crypto. According to previous reporting, crypto projects spent a record $638 million on token buybacks through late August.