Crypto & Finance · VIDEO
Buyback Tokens Are Not Securities If The Network Is Functional
The SEC has published new FAQs that specify when token buyback programs can avoid classification as a security. For already functional networks, buybacks do...
KEY TAKEAWAYS
- The SEC clarifies that token buybacks are not securities if the network is already functional.
- For non-functional networks, buybacks could still trigger securities laws if presented as a source of income.
- The new FAQs follow the March interpretive precedent and the proposed crypto asset regulation.
- Lawyer Gabriel Shapiro calls the guidance a 'loophole' in the regulatory regime, but emphasizes that it has no legal force.
