SEC Unveils New Crypto Asset Guidance in FAQs

The US Securities and Exchange Commission (SEC) has released new FAQs on crypto assets that provide guidance on token classification, staking receipts, and buybacks.

The FAQs aim to clarify how SEC staff think about these topics, but it's essential to note that they do not create new legal obligations or amend existing laws.

According to the FAQs, a project team can use their own definition of a functional or decentralized network when determining token classification. However, this threshold does not automatically decide how the SEC classifies the token.

The staff also provides practical examples in the FAQs, such as how staking receipt tokens are treated as digital tools that serve a practical function by evidencing ownership of an underlying commodity.