# SEC FAQ Clarifies When Token-Holder Governance May Count as Central Control

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/47032
Published: 2026-11-02T23:22:56.000Z
Updated: 2026-11-02T23:22:56.000Z
Section: Regulation

> The staff update examines whether decisions involving many token holders may still count as centralized for classification purposes.

The SEC has updated its crypto token classification FAQ to address when governance spread across a broad group of token holders may still count as central control, a distinction that bears on how crypto assets are classified.

The update concerns the relationship between holder participation and control. It addresses whether decision-making that involves many token holders may still count as centralized for classification purposes. Broad governance and decentralization are related, but the FAQ’s focus is whether broad participation may still fall within a central-control analysis.

The central question flagged by the update is whether governance across a broad token-holder base may still amount to central control. That question bears on how a crypto asset is classified.