SEC Staff Says Token Buybacks Don’t Make Crypto a Security

token buybacks — Staff at the U.S. Securities and Exchange Commission have issued new guidance stating that a token buyback program does not automatically render a cryptocurrency a security, provided the underlying network is functional and decentralized.

The guidance, published on September 27, 2026, clarifies that an announcement to repurchase tokens from the secondary market is not inherently an “investment contract” under the Howey Test. The analysis hinges on whether the network is operational and the buyback is not a promise of profits derived from the efforts of others.

This represents a notable shift in the regulatory interpretation of token economics. Previously, such buyback programs could be scrutinized as a potential indicator of a security offering. The new staff position suggests that on a sufficiently decentralized and functional network, a buyback is akin to a corporate share repurchase and does not change the fundamental nature of the asset.

One attorney cited in the report characterized the development as making securities laws appear “opt-in” for certain crypto projects, highlighting the ongoing evolution of regulatory frameworks as they apply to digital assets. The guidance offers clearer parameters for projects considering treasury management strategies involving their native tokens.