SEC Says Token Buybacks, Network Activity, Staking Receipt Tokens Aren’t Automatically Securities
JH Kim
Summary
- The U.S. Securities and Exchange Commission (SEC) issued guidance saying crypto token buybacks, network activity, and staking receipt tokens do not automatically qualify as securities.
- Those activities or tokens are not classified as securities solely on that basis.
- The guidance is not legally binding, and whether a specific crypto asset or transaction qualifies as a security may depend on the particular facts and circumstances.
Forecast Trend Report by Period
The U.S. Securities and Exchange Commission has issued guidance saying crypto token buybacks, blockchain network activity and receipt tokens representing staked crypto assets are not automatically deemed securities.
Cointelegraph reported on September 28 that those activities or tokens are not classified as securities solely on that basis.
The guidance covers token buybacks by crypto projects, blockchain network-related activity and receipt tokens tied to staked assets.
The guidance is not legally binding, however, meaning whether a specific crypto asset or transaction qualifies as a security may still depend on the particular facts and circumstances.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.