SEC Updates Crypto Guidance Amid Regulatory Uncertainty
The US Securities and Exchange Commission (SEC) has updated its policies on how securities laws apply to certain types of crypto assets. This move follows a similar guidance issued by the country's federal commodities regulator, the CFTC.
The SEC's updated FAQs clarify that token issuers can conduct buyback programs for customers if a crypto system is functional and has no central party controlling it. The agency also stated that a system that is functional, services to secure, maintain, improve, or enhance its functionality, or to facilitate network effects, would not necessarily qualify as an investment contract under federal securities laws.
The SEC's guidance also applies to staking receipt tokens, which may not always classify as securities. This move comes after the CFTC issued similar guidance for token issuers.
SEC Chair Paul Atkins and CFTC Chair Michael Selig have signaled that their agencies will address crypto regulation in the absence of laws passed by Congress.