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The September 25 FAQ does not create a new rule or a universal safe harbour. It explains how the Division of Corporation Finance staff applies the SEC’s March interpretation when an issuer promotes a non-security crypto asset, manages a buyback or continues work on a network.
The SEC staff’s dividing line
A functioning crypto system
A buyback announcement alone would not be a promise to undertake the essential managerial efforts relevant to the Howey analysis.
A buyback announcement alone would not be a promise to undertake the essential managerial efforts relevant to the Howey analysis.
A system that is still being built
The same announcement can matter when the issuer presents it as creating yield or returns for token holders.
The same announcement can matter when the issuer presents it as creating yield or returns for token holders.
The same buyback can be read in two ways
The FAQ does not treat every token repurchase as a securities-law signal. Its answer turns on whether a functioning system already exists and what purchasers are being told to expect from the issuer.
For a functional network, an announced buyback may reflect treasury management, supply reduction, a protoc...
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