Regulation· ★★★★· bullish·

SEC: token buybacks and network upgrades don't make a token a security

  • —SEC: buybacks by an operational project are not an automatic security marker
  • —Post-launch upgrades and maintenance are not treated as promises of profit
  • —For pre-launch projects, marketing buybacks as yield may trigger securities status
  • —Lawyer Gabriel Shapiro called the SEC's approach 'opt-in' regulation
Why it matters: The guidance lowers regulatory risk for DeFi projects and their tokens, though the FAQ is non-binding and could be revised or challenged in court.
Source: Coin68
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