On November 2, the Securities and Exchange Commission’s Division of Corporation Finance expanded its frequently asked questions on cryptoassets, including guidance on the concept of a central party and network oversight. Under this guidance, a native token of a functional network may be classified as a digital commodity rather than a security as long as no central party exercises operational, economic or voting control. Unaffiliated voters participating in the network’s expanded governance are generally not treated as a central party unless they have formally or informally agreed to act together. A central authority may nevertheless oversee the network by controlling access, voting rules, transaction validation or source code. The guidance could benefit UNI, AAVE, ARB and decentralized autonomous organizations, but the Commission has neither approved nor disapproved it, and it has no officially recognized legal force.
Source: Read the original article
