Original sourcecoingeek.com
Summary
The US SEC published and then revised a crypto asset securities law FAQ, clarifying token buyback guidance. The revision states that if a token system is not yet fully operational or lacks a central actor, issuer buybacks of tokens may raise securities concerns, responding to a loophole industry la…
Key points
- Token projects and exchanges can use the FAQ to grasp SEC staff's latest stance on when buybacks raise securities issues, but must understand it has no legal force.
- The revision to buyback guidance directly affects how token projects design market operations, and comes amid shifting SEC leadership and enforcement capacity.
- Project teams should reexamine buyback plans and the degree of system decentralization to avoid being deemed securities transactions in the absence of a central actor.
Editorial note
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