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      SEC Clarifies Token Buyback Guidelines with 'No Central Party' Condition

      On September 25, 2026, the U.S. Securities and Exchange Commission (SEC) updated its frequently asked questions (FAQ) regarding token buybacks, introducing a new stipulation that emphasizes the necessity of a decentralized system. The revision specifies that the absence of centralized control is a critical requirement for compliance with the SEC's guidelines on token buybacks.

      Previously, the SEC's guidance focused solely on the functionality of the systems involved in token buybacks. The latest clarification aims to ensure that any token buyback mechanism operates without a central authority, reinforcing the SEC's commitment to regulating the cryptocurrency market in a manner that promotes transparency and fairness.

      This change reflects ongoing efforts by the SEC to adapt its regulatory framework to the evolving landscape of digital assets, particularly as decentralized finance (DeFi) continues to gain traction. The SEC's emphasis on decentralized systems is likely to influence how companies structure their token buyback initiatives moving forward.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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