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      SEC Staff Issues New Guidance on Crypto Buybacks and Staking Tokens

      The U.S. Securities and Exchange Commission (SEC) staff released new guidance on September 22, 2026, clarifying the treatment of certain cryptocurrency buybacks, staking receipt tokens, and ongoing blockchain development under federal securities laws. This guidance, published by the SEC’s Division of Corporation Finance, builds on an earlier interpretation from March but does not have the force of law and has not been formally approved by the Commission.

      A significant aspect of the guidance addresses token buybacks. SEC staff indicated that if a cryptocurrency network is operational, announcing a buyback of a non-security crypto asset does not automatically imply a commitment to perform essential managerial efforts as defined by the Howey test. However, if the network is not yet functional, such a buyback could be interpreted as creating an investment contract if it promises returns for token holders.

      The guidance also discusses liquid staking tokens, stating that a staking receipt token representing a digital commodity not subject to an investment contract may be classified as a 'digital tool.' This classification applies when the token serves as a receipt for an underlying asset. Furthermore, promotional activities regarding a network's current capabilities generally do not imply essential managerial efforts, and aspirational statements about future features may also fall outside this analysis.

      Additionally, the SEC staff clarified that operating a secondary market for a crypto asset does not automatically categorize a trading platform as a promoter. The platform must still meet the criteria defined under Securities Act Rule 405 to be considered a promoter. This guidance aims to provide clarity in the evolving landscape of cryptocurrency regulation.

      © 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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