SEC Tightens Token Buyback Guidelines as Bitget Reopens Bitcoin Withdrawals

The SEC has updated its token buyback FAQ to clarify that only systems without a central party can rely on the assurance. This means issuers must prove their tokens are functional and decentralized, with no person or entity controlling them.

According to the revised answer, which was added on September 28, an issuer announcing a token buyback would not be seen as making promises of managerial efforts if the system is both functional and has no central party. This change affects the interpretation of Question 2.5 in the FAQ.

Hester Peirce had previously stated that having a central party would disqualify issuers from relying on this assurance, and Miles Jennings welcomed the amendment as a safeguard against misinterpretation.

Meanwhile, Bitget has reopened bitcoin withdrawals after a $387.5 million breach. The exchange blamed a vulnerability in a third-party security product for the incident, which it claims was contained without compromising private keys or cold wallets.