TREE NEWS update: The SEC’s Division of Corporation Finance issued new FAQs stating that token buybacks are permitted on working networks, and that some liquid staking tokens can qualify as digital commodities. The guidance also says funding upgrades to a functioning network is not the kind of effort that turns a token into a security, while warning that unfinished networks still face securities risk.
SEC Staff: Token Buybacks Allowed on Working Networks
AI take
This is the SEC staff drawing a practical line between live and pre-launch networks, which matters most for teams weighing buybacks and for staking-token issuers whose commodity status has been the central legal ambiguity. The unfinished-network caveat preserves the enforcement threat, so the guidance rewards operational maturity rather than intent. The open question is whether this staff-level FAQ survives into formal rulemaking or gets tested in a case where a network's 'working' status is contested.
Generated by AI for reference only.
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