SEC Updates Crypto Guidance, Aligns With CFTC Framework

The US Securities and Exchange Commission (SEC) has updated its guidance on crypto assets, aligning with the framework outlined by the Commodity Futures Trading Commission (CFTC). The SEC emphasized that its revised FAQs are non-binding and do not change existing law.

The agency's update focuses on how it would analyze digital asset products under the Howey test, which examines whether a product is an investment contract. Key takeaways include token issuer buyback programs being permissible without necessarily leading to securities classification, provided certain conditions are met.

The SEC also clarified that network operations and staking receipt tokens may not always be treated as securities, depending on how the facts map to the Howey test.