🚨NEW: The
@SECGov just updated its crypto FAQ on token buybacks to add a stipulation that if there is no central party behind those token buybacks, then this arrangement likely does not constitute an investment contract.
It comes following comments from
@a16zcrypto General Counsel and Head of Policy
@milesjennings last week that the prior wording could “empower an issuer to announce the buyback program without that announcement then creating an investment contract.”
🚨NEW: SEC staff has issued new FAQs clarifying how the Commission’s March interpretive release on digital assets applies to token functionality, staking receipt tokens and investment contracts.
Among the guidance: once a network is functional, services to maintain, improve or grow it generally would not count as “essential managerial efforts” under the Howey test.
The FAQs reflect staff views and have no legal force or effect.