SEC just dropped new crypto guidance that actually matters
Key points:
Staking receipt tokens might NOT be securities if structured right - could qualify as digital commodities/tools instead
Token buybacks on functional networks ≠ securities by default. Buybacks alone don't meet the "essential managerial efforts" test under Howey
Routine network maintenance & upgrades won't automatically trigger securities classification
The catch: This is STAFF guidance, not law. Still case-by-case analysis. No blanket pass.
Side note: Hester Peirce pushing for privacy-first KYC alternatives before she's out Oct 2. One of the real ones leaving.
This is the regulatory shift we've been waiting for. Pay attention to how projects structure staking mechanisms going forward.
Key points:
Staking receipt tokens might NOT be securities if structured right - could qualify as digital commodities/tools instead
Token buybacks on functional networks ≠ securities by default. Buybacks alone don't meet the "essential managerial efforts" test under Howey
Routine network maintenance & upgrades won't automatically trigger securities classification
The catch: This is STAFF guidance, not law. Still case-by-case analysis. No blanket pass.
Side note: Hester Peirce pushing for privacy-first KYC alternatives before she's out Oct 2. One of the real ones leaving.
This is the regulatory shift we've been waiting for. Pay attention to how projects structure staking mechanisms going forward.
