Regulation· ★★★★· bearish·

SEC tightens token buyback guidance three days after publishing it

  • —Sept. 25 guidance allowed buybacks for functional systems without implying a value promise
  • —Sept. 28 update added a "no central party" condition to that exemption
  • —Token buyback spending hit a record $638 million through late August
  • —The SEC staff FAQ is not legally binding and does not settle security status
Why it matters: Projects running buybacks must now show no central control, or the purchases could be treated as an investment contract.
Source: CryptoSlate