U.S. SEC Issues 9 FAQs on Crypto Asset Securities Classification

This article is from:U.S. Securities and Exchange Commission Official Website

Compiled by Odaily Planet Daily (@OdailyChina); Translator: Moni

Editor’s Note: The U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance has released a FAQ on cryptocurrency asset regulation, focusing on issues such as functional networks, staking receipt tokens, token buybacks, and marketing promotions, providing further guidance on when cryptocurrency assets may not be subject to the investment contract framework.

The following content is translated by Odaily Planet Daily.

The U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance has released a FAQ regarding the application of federal securities laws to specific types of crypto assets and related transactions, further addressing unresolved questions from its prior interpretive guidance on crypto assets. Although this FAQ is not an official SEC rule or statement and does not have legal force, it further clarifies the regulator’s understanding of the boundary between “non-securities crypto assets” and “investment contracts.”

From functional networks and staking receipt tokens to token buybacks, marketing efforts, and whether exchanges constitute an “issuer,” this FAQ addresses multiple practical issues long scrutinized by the industry. A key thread is: when a crypto system has become functional and has progressively reduced or eliminated central control, under what circumstances do issuers and other participants no longer constitute “essential managerial efforts” under the Howey test.