The CLARITY Act totally flopped in the US Senate on September 15 but that hasn’t stopped the two biggest local regulators from trying to sort out crypto rules in the country lol. The SEC is now dropping fresh staff guidance on some long-running questions 🖤
Fresh FAQ Vibes on Staking Receipts 🔮
One of the standout parts dives into staking receipt tokens which show ownership of crypto assets put up for staking. The watchdog’s take shows a staking receipt tied to a digital commodity free from any investment contract can count as a digital tool since it just proves you own the base asset 🌑. In some cases this token might even qualify as a digital commodity when a protocol-based liquid staking provider issues it. Everything hinges on what rights the receipt actually gives 😈. A real receipt shouldn’t hand over ownership or control to the issuer and definitely shouldn’t let them lend pledge rehypothecate or use it in other ways 💀.
Continuing to secure maintain improve or enhance a working blockchain network including funding dev or boosting network effects doesn’t count as those essential managerial efforts tied to an investment contract under Howey 👁️. Once a functional crypto system has no central controller statements from the original issuer are way less likely to spin up a fresh investment contract around the native asset 🦇.
Buyback and Marketing Tea with a Twist 💎
Announcing a buyback of a non-security token for a functional crypto system won’t count as promising essential managerial efforts 🚀. That flips tho if the network isn’t functional yet and the issuer pushes the buyback as a yield or returns generator for holders. Broader marketing gets the same vibe as the SEC noted that just hyping a network’s current utility or capabilities usually won’t create an investment contract. Even hype about future features might slip past if it doesn’t dangle profit prospects 🌙. These FAQs come right after the latest SEC and CFTC guidance shared post the CLARITY Act vote fail.
Just another echo from the void by iconofsin.eth 💖
