The US Securities and Exchange Commission (SEC) has updated its guidance regarding the application of federal securities laws to specific crypto assets and transactions. This move follows a similar policy update issued by the Commodity Futures Trading Commission (CFTC) the previous week.
The SEC clarified that its updated FAQs are non-binding and carry no legal force. The guidance outlines how the agency applies the Howey test to digital assets. Specifically, token issuers may conduct buyback programs if the system is functional and lacks a central party, meaning it may not qualify as an investment contract.
The agency also noted that networks providing services to secure, maintain, or improve functionality may not satisfy the Howey test. Furthermore, staking receipt tokens will not always be classified as securities. These updates were released after the Senate failed to pass the CLARITY Act, which aimed to define the regulatory roles of the SEC and CFTC.
SEC Commissioner Hester Peirce announced her resignation effective October 2, after eight years of service. She is expected to join Regent University as an associate professor in November. Following her departure, the SEC leadership will consist of Chair Paul Atkins and Commissioner Mark Uyeda, with two Democratic seats remaining vacant.
