SEC Updates Crypto Asset Guidance Following CFTC’s Lead
- The SEC updated its policies on crypto assets, stating the guidance is non-binding and has no legal force.
- Token issuers can conduct buyback programs if their crypto systems are functional and decentralized.
- Staking receipt tokens may not always be classified as securities under federal laws.
- The updates come after the Senate failed to pass a crypto market structure bill that would clarify regulatory roles.
- SEC Commissioner Hester Peirce, known as “Crypto Mom,” plans to resign on October 2 after eight years at the agency.
The SEC’s latest guidance aims to clarify how it will interpret investment contracts for digital assets under the Howey test, particularly for decentralized systems and staking mechanisms. This update follows similar guidance from the CFTC, indicating a coordinated effort by regulators in light of legislative inaction on crypto regulations.
With Peirce’s resignation, the SEC leadership will focus on adapting regulations without new congressional mandates, underscoring the evolving landscape of Legal frameworks for digital assets.(Source)
