The SEC’s Division of Corporation Finance has published a new FAQ related to its March 23 Interpretive Release, clarifying when a token may be considered a security. This FAQ specifies that token buyback programs, blockchain upgrades, and marketing statements do not automatically turn a token into a security, provided the system is functional. According to attorney Gabriel Shapiro, this new approach opens a broad path to avoid securities regulation, as long as the token confers no rights, promises are measured, and the system is operational. Shapiro also suggests that this development could encourage companies to prefer token fundraising over shares to benefit from a less restrictive regulatory framework.
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