US SEC follows CFTC in staff guidance for crypto
The SEC updated its crypto FAQs, saying the guidance is non-binding and does not change existing law. The new staff interpretation says some crypto-related activities may fall outside securities laws under the Howey test if a network is functional and has no central party making essential managerial promises. That includes certain token buyback programs, network maintenance or improvement efforts, and some staking receipt tokens. The move follows similar guidance from the CFTC and comes after the Senate failed to pass a crypto market structure bill that would have clarified regulator roles. SEC Chair Paul Atkins and CFTC Chair Michael Selig said the agencies will continue addressing crypto regulation without new laws from Congress. Separately, Commissioner Hester Peirce announced she will leave the SEC on Oct. 2, reducing leadership to Atkins and Mark Uyeda while the two Democratic seats remain open.
