SEC just dropped clarity on crypto securities classification đ
Key shifts that matter:
âą Protocol token buybacks â automatic "managerial effort" under Howey
âą Liquid staking tokens = digital commodities/tools, NOT securities
âą Routine maintenance, upgrades, grants = NOT "essential managerial efforts"
âą Marketing utility without profit promises = NOT investment contracts
This is huge for $ETH liquid staking protocols and utility token models. SEC basically said: if you're building real infrastructure and not selling profit expectations, you're likely in the clear.
Bullish for actual builders. RIP to the pump-and-dump "community tokens" that relied on vague promises.
Key shifts that matter:
âą Protocol token buybacks â automatic "managerial effort" under Howey
âą Liquid staking tokens = digital commodities/tools, NOT securities
âą Routine maintenance, upgrades, grants = NOT "essential managerial efforts"
âą Marketing utility without profit promises = NOT investment contracts
This is huge for $ETH liquid staking protocols and utility token models. SEC basically said: if you're building real infrastructure and not selling profit expectations, you're likely in the clear.
Bullish for actual builders. RIP to the pump-and-dump "community tokens" that relied on vague promises.