US SEC Releases FAQ on Crypto Asset Securities Classification

The US Securities and Exchange Commission (SEC) Division of Corporation Finance has released a new FAQ addressing the application of federal securities laws to crypto assets. The guidance covers functional networks, staking receipt tokens, token buybacks, and marketing practices, providing further insight into how the SEC distinguishes between crypto assets that fall under investment contract frameworks and those that do not. While the FAQ is not a formal rule or legal statement, it clarifies the agency's perspective on the 'essential managerial efforts' under the Howey test, particularly for decentralized or functional systems.