SEC changes token buyback guidance as spending hits $638M
Summary
The SEC staff revised its crypto token buyback guidance three days after issuing it, adding that a buyback announcement for a non-security token is not, by itself, a promise of managerial efforts only when the system is functional and has no central party. If a system is not functional, promoting buybacks as a source of returns could count as such a promise. The guidance is nonbinding and does not determine whether a token is a security. The change focuses attention on who can control purchases and broader system decisions. Examples from Pump.fun and Aave show that some purchases may be automatic while people or committees retain power to alter or pause programs; this alone does not establish whether a system has a central party.
