SEC Tightens Token Buyback Rules, Emphasizing Decentralized Control

The US Securities and Exchange Commission (SEC) has updated its token buyback FAQ to include an explicit condition that tokens must be decentralized, or lack centralized control. This change affects how SEC staff assesses whether a token buyback complies with the guidance.

The revised FAQ adds a new limitation to the existing framework, making it clear that any system used for token buybacks cannot have centralized control. The update was made after a previous answer on September 25 did not explicitly include this condition.

This change may narrow the scope of what qualifies under the SEC's guidance, potentially limiting when buybacks can be considered compliant. However, it does not establish that any particular project meets the new conditions or announce a new token buyback program.