The SEC has drawn the boundaries even more precisely this time. The first thing the market reads is still the three words: “certainty.”
According to a report by PANews, the SEC’s Division of Corporation Finance has released a crypto asset FAQ, further explaining the securities law boundaries under the Howey Test for functionalized networks, staked-asset tokens, and buyback plans. The article notes that once a network is functionalized, activities such as maintenance, upgrades, and promoting network effects no longer constitute “essential managerial efforts.” Staked-asset tokens may also, under certain conditions, be considered digital commodities.
These shifts in interpretation are twofold: on one hand, they make it clearer how projects should plan their marketing and issuance; on the other, they spell out the compliance red lines more plainly. For networks that are already mature and running, LST/staking services, and projects with buyback designs, short-term sentiment is often easier to ignite. However, the FAQ is not an official rule or statement—whether enforcement interpretations remain consistent afterward is still a key point to watch.
Which layer of impact do you care more about: clearer regulatory boundaries, or the market trading first on “good news” sentiment?
Figure 1: The SEC clarifies the securities boundaries for crypto assets · Source page partial screenshot
Image source: https://www.panewslab.com/zh/articles/01a0dc28-c8df-767a-a755-9a8dc151df78
According to a report by PANews, the SEC’s Division of Corporation Finance has released a crypto asset FAQ, further explaining the securities law boundaries under the Howey Test for functionalized networks, staked-asset tokens, and buyback plans. The article notes that once a network is functionalized, activities such as maintenance, upgrades, and promoting network effects no longer constitute “essential managerial efforts.” Staked-asset tokens may also, under certain conditions, be considered digital commodities.
These shifts in interpretation are twofold: on one hand, they make it clearer how projects should plan their marketing and issuance; on the other, they spell out the compliance red lines more plainly. For networks that are already mature and running, LST/staking services, and projects with buyback designs, short-term sentiment is often easier to ignite. However, the FAQ is not an official rule or statement—whether enforcement interpretations remain consistent afterward is still a key point to watch.
Which layer of impact do you care more about: clearer regulatory boundaries, or the market trading first on “good news” sentiment?
Figure 1: The SEC clarifies the securities boundaries for crypto assets · Source page partial screenshot
Image source: https://www.panewslab.com/zh/articles/01a0dc28-c8df-767a-a755-9a8dc151df78
