The U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance released an FAQ on the application of federal securities laws to crypto assets and related transactions on the 25th (local time). In the FAQ, SEC staff explained that after a cryptocurrency system is fully functional, even if issuers continue to support the security, maintenance, improvement, or user expansion of that system, it is difficult to view this as an 'investment contract' for the purpose of increasing token prices. It also stated that a 'Staking Receipt Token,' which proves ownership of digital assets deposited through staking, may be classified as a 'digital tool' based on its function of proving asset ownership if the underlying asset does not constitute an investment contract, and may be classified as a 'digital commodity' if issued by a protocol-based liquidity staking provider. Furthermore, a buyback (repurchase of own tokens) plan for a functional cryptocurrency also does not, in principle, constitute an investment contract, but this could change if the buyback is promoted as a means for token holders to generate profit while the functionality is not yet fully developed. However, the SEC clarified that this FAQ represents the views of the staff of the Division of Corporation Finance, not official rules or regulations of the SEC Commission, and therefore has no legal binding force.
