The SEC updated its crypto FAQ and confirmed that token buybacks do not constitute a promise of essential managerial efforts once a network is functional, under the Howey test. This decision lifts the legal uncertainty over many DeFi protocols using this model, such as Pump.fun ($451 million burned), Pons (80% of revenue directed to buybacks), or Ethena (95% of net revenue directed to ENA). If a network is not yet functional and promises yields through buybacks, it still falls under securities laws.
Source: Read the original article
Disclaimer: this content is for information purposes only and is not financial advice. Cryptocurrencies are highly volatile: you may lose all of your capital. Always do your own research. Legal notice
