The US Securities and Exchange Commission (SEC) has revised its guidance on token buybacks, adding a crucial condition that token buyback systems must not have a central party controlling them. The revised FAQ, published on September 25, now explicitly states that a decentralized system is essential for avoiding regulatory scrutiny.
This article is Bitcoincryptos' summary and analysis of reporting originally published by The Defiant. Read the full original report at the link above.
The change was made to a question about the system's functionality, which previously only mentioned the absence of a central party without making it a requirement. This clarification provides clarity for issuers looking to conduct token buybacks, a common practice in the crypto space.
