Original sourceUnchainedAdditional: Tech Times
Summary
The US SEC's Division of Corporation Finance updated its crypto token buyback FAQ on September 28, narrowing the scope to networks that are both 'operational' and have 'no central actor.' The revised text says that if a network meets both conditions, an issuer announcing buybacks of non-security cr…
Key points
- It moves buyback compliance from a feature check to a governance-structure check, letting DeFi projects review on-chain treasuries and management keys accordingly.
- Governance structure becomes the criterion for whether buybacks touch securities law, directly affecting DeFi protocols' treasury and upgrade design.
- Protocols that still have management keys or off-chain control face unchanged buyback announcement risk and must re-examine governance and treasury operation records.
- The update follows the SEC's initial token buyback FAQ on September 25 and is a narrowing adjustment to the same guidance.
Editorial note
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