SEC staff says certain crypto buybacks and staking tokens fall outside securities laws
- —Buybacks of non-security tokens in a functional network are not a promise of managerial efforts under Howey
- —In a non-functional network, a buyback could form an investment contract if it promises yield
- —Liquid staking receipt tokens may qualify as a "digital tool"
- —Maintaining and securing a functional network does not necessarily constitute managerial efforts
Why it matters: Reduces regulatory uncertainty for DeFi staking and token buybacks, though the guidance lacks the force of law and may be revised.
Source: Crypto Briefing