SEC issues non-binding crypto guidance on tokens and staking after Senate bill fails

SEC crypto guidance — The U.S. Securities and Exchange Commission (SEC) has updated its staff guidance on how federal securities laws apply to certain crypto assets and transactions, following a similar move by the Commodity Futures Trading Commission (CFTC). The announcements come days after the Senate failed to pass a major crypto market structure bill.

In a Friday update to its frequently asked questions, the SEC stated its new interpretation is non-binding and creates no new legal obligations. The guidance addresses when token buyback programs and functional crypto networks might not constitute investment contracts under the Howey test. It also notes that staking receipt tokens would not always be classified as securities.

The SEC’s action mirrors guidance issued by the CFTC last week. Both financial regulators signaled they would address crypto oversight in the absence of new legislation from Congress, following the failed cloture vote on the CLARITY Act.

Separately, SEC Commissioner Hester Peirce, known as “Crypto Mom,” announced her resignation effective October 2 after eight years at the agency. Her departure will leave the bipartisan commission with three members, two Republicans and one Democrat, until President Donald Trump names replacements.