The U.S. Securities and Exchange Commission (SEC) has updated its guidance on crypto assets, providing further detail on when token activities may fall outside federal securities laws as the agency continues to clarify its approach to digital assets.
The SEC’s Division of Corporation Finance updated its crypto FAQs on September 25 2026 addressing issues including
token buybacks,
functional crypto networks, and
staking receipt tokens.
REGULATION | The CLARITY Act Fails to Advance
For functional crypto systems, the SEC said an issuer’s announcement of a buyback program would not constitute a promise to perform essential managerial efforts. That could change where a network is not yet functional and the buyback is presented as creating a return or yield for token holders.
The agency also said that once a crypto system is functional, activities to secure, maintain, or improve the network, or support network effects, would not necessarily constitute the essential managerial efforts required for an investment contract under the Howey test.
The updated FAQs also clarify the treatment of staking receipt tokens saying a receipt representing ownership of an underlying non-security crypto asset would not itself constitute a security under the circumstances outlined by the SEC.
REGULATION | SEC Commissioner Provides Regulatory Distinction Between Tokenized Securities and Synthetic Instruments
The SEC emphasized that the FAQs represent staff views rather than formal Commission rules. They have no legal force or effect, do not amend existing law, and do not create new obligations.
The update gives crypto issuers and market participants additional guidance on how the SEC intends to apply its March 2026 interpretation of federal securities laws to specific crypto activities while leaving Congress to establish any broader statutory market structure framework.
The update comes about a week after CFTC similarly sent crypto market rules to the White House after the Senate vote failed to pass the CLARITY Act.
CFTC Chairman, Michael Selig, said after the Senate vote that the agency was ‘locked in and ready to ship’ crypto market rules using its existing statutory authority. SEC Chairman, Paul Atkins, similarly said the securities regulator would proceed ‘with or without legislation.’
REGULATION | CFTC Sends Crypto Market Rules to White House After CLARITY Act Stalls
Stay tuned to BitKE on crypto regulatory developments globally.
Join our WhatsApp channel here.
Follow us on X for the latest posts and updates
Join and interact with our Telegram community
__________