The SEC’s Division of Corporation Finance issued FAQs on September 25 clarifying how token buyback announcements, network upgrades and staking receipt tokens fit within its crypto-asset framework. The answers are staff views, not a Commission rule, and have no legal force or effect.

Buybacks depend on network functionality

For a functional crypto system, staff say an issuer’s announcement of a non-security crypto asset buyback program would not constitute a promise to undertake essential managerial efforts. That distinction matters to whether a transaction involves an investment contract under the Howey test.

The answer changes for unfinished systems. If a network is not functional, announcing a buyback could constitute such a promise when the issuer presents it as creating yield or returns for tokenholders. The guidance therefore does not provide blanket clearance for token repurchases or classify every repurchased token as a non-security.

Staff also say services that secure, maintain or improve an already functional system, including funding development projects, would not involve essential managerial efforts under the interpretation cited in the FAQs.

Staking receipts get a separate clarification

A staking receipt representing a digital commodity that is not subject to an investment contract is classified as a digital tool under the described circumstances. It may also qualify as a digital commodity when issued by a protocol-based liquid staking provider.

The document preserves another boundary: transferring an issuer’s promises to a different party does not separate the token from its associated investment contract. Together, the answers give protocol teams more specific guidance without replacing the underlying law or creating a new exemption.