The SEC’s Buyback Guidance Is Narrower Than It Looks. Does Yours Pass the Test?
By Jeff Albus
AI summary of the source article
The SEC updated guidance to clarify that token buyback programs do not constitute essential managerial efforts only if the network is functional and has no central party. Networks with entities holding operational, economic, or voting control are excluded from this relief. Consequently, centralized protocols conducting buybacks remain ineligible for the safe harbor and are subject to case-by-case Howey test evaluations.