Unaffiliated Governance Voters Generally Aren’t a Controlling ‘Group,’ SEC Staff Say
By Unchained
AI summary of the source article
SEC Division of Corporation Finance staff clarified in an updated crypto FAQ that unaffiliated governance voters generally do not constitute a controlling group. The staff emphasized that these interpretations represent staff views and carry no legal force.
Why it matters
The Hyperliquid Policy Center warned in a comment letter that the release's central-party definition "could be misconstrued to capture any crypto system with a governance token."
Key facts
- SEC staff stated governance voters are generally not a group if they are unaffiliated and have no agreement to act in concert outside the governance system.
- A qualifying governance system must be transparent, rules-based, wide and diverse, with no concentration of power.
- The Commission has neither approved nor disapproved the FAQ answers, which have no legal force or effect.
Source excerpt · Unchained
New staff answers cover token voting, governance housed in foundations and powers like reversing transactions, though they bind no one and name no project. The post Unaffiliated Governance Voters Generally Aren’t a Controlling ‘Group,’ SEC Staff Say appeared first on Unchained .