SEC Staff Adds No-Central-Party Condition to Token Buyback FAQ
The revised guidance makes the absence of centralized control an explicit condition, potentially narrowing when token buybacks fit the framework.
SEC staff revised its token buyback FAQ to make the absence of centralized control an explicit condition, potentially narrowing when buybacks can fit the guidance.
The updated answer adds the no-central-party limitation to an earlier explanation that focused only on a system’s functionality.
The change affects the scope of the staff guidance rather than announcing a new token buyback program or market action. It also does not establish that any particular project qualifies under the framework.
The revision was made after the SEC staff’s Sept. 25 answer, which did not expressly include the centralized-control condition.
