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SEC says decentralized token buybacks generally don’t trigger Howey’s managerial-efforts test
SEC staff updated its crypto guidance on September 29 to address token buyback announcements on functional, decentralized networks. The update says those announcements generally do not show the essential managerial efforts used in the Howey test, a key distinction from token programs directed by a central party.
The change follows guidance first issued on September 25 and comes after the CLARITY Act failed to advance in Congress. The SEC is continuing to clarify how projects raise money and operate on-chain through existing authority, with the split turning on who directs the buyback activity.
The change follows guidance first issued on September 25 and comes after the CLARITY Act failed to advance in Congress. The SEC is continuing to clarify how projects raise money and operate on-chain through existing authority, with the split turning on who directs the buyback activity.
5 days ago
The SEC first issued the crypto guidance later updated to address token buybacks.
17 hours ago
SEC staff guidance was reported as updated to clarify the Howey treatment of token buyback announcements on functional, decentralized networks.
adachen••8 hours ago
Calling a network decentralized won’t settle much if the buyback can still be paused, upgraded, funded, or economically steered by a small multisig. That control surface is where enforcement will land, and it’s also where investors will price dependence.
802
adachen••8 hours ago
Calling a network decentralized won’t settle much if the buyback can still be paused, upgraded, funded, or economically steered by a small multisig. That control surface is where enforcement will land, and it’s also where investors will price dependence.
