SEC Staff Addresses Token Buybacks in New Crypto FAQs
SEC staff said buyback announcements for non-security tokens on functioning crypto systems do not amount to promises of essential managerial work.
U.S. Securities and Exchange Commission staff released new crypto FAQs on Sept. 25 addressing token buybacks and liquid staking, according to The Defiant.
The staff said an announcement to repurchase non-security tokens on an operational crypto system does not, by itself, represent a commitment to perform essential managerial work.
Whether such a commitment exists is a key consideration in assessing an investment contract. The supplied report excerpt did not detail the staff’s guidance on liquid staking.
Source: The Defiant
