Regulation· ★★★· neutral·

SEC adds no-central-party condition to token buyback FAQ

  • —FAQ applies only to functioning systems with no central party
  • —Criteria for systems with a central party are not addressed
  • —Framing buybacks as holder income may count as a promise of essential efforts
  • —FAQ reflects staff views and has no legal effect
Why it matters: The clarification narrows the cases where token buybacks avoid being deemed investment contracts, adding legal uncertainty for projects with a controlling party.
Source: TokenPost
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