SEC Staff FAQ Says Crypto Buybacks and Staking Receipts Are Not Necessarily Securities

The Securities and Exchange Commission staff updated its crypto asset FAQ with guidance saying certain token buybacks, network maintenance services and staking receipt tokens are not necessarily investment contracts under the Howey framework.

The FAQ says a buyback program for a functioning crypto system without a central entity does not automatically represent a promise that a party will provide essential managerial efforts. Services involving network security, maintenance, upgrades and network effects also do not necessarily satisfy the investment-contract test when a network is already operating.

Staking receipt tokens likewise are not automatically classified as securities under the staff’s analysis.

The document is nonbinding. It does not amend existing securities laws, replace regulations or create new legal obligations, leaving its treatment as staff guidance rather than formal rulemaking.

The update follows separate crypto guidance from the Commodity Futures Trading Commission and comes as the Senate’s CLARITY Act has stalled after failing to advance through a cloture vote. The SEC’s FAQ provides a current compliance reference, but future agency leadership could change the staff’s approach.