The US Securities and Exchange Commission has updated its staff guidance on how federal securities laws may apply to some digital assets and crypto transactions, moving after lawmakers failed to advance the CLARITY Act. The agency’s action follows similar guidance from the Commodity Futures Trading Commission and offers a non-binding interpretation of when certain crypto activities may fall outside the definition of an investment contract.
SEC clarifies the status of its guidance
The SEC added answers to its frequently asked questions, which were first issued in March. The updated material addresses “certain types of crypto assets and certain transactions involving crypto assets,” including digital asset products assessed under the Howey test.
The Howey test is the legal framework used in the United States to determine whether an arrangement qualifies as an investment contract, a category covered by federal securities laws. Broadly, the test considers whether people invest money in a common enterprise with an expectation of profits from the efforts of others.
The SEC stressed that its latest interpretation is not a new rule. The agency said the staff guidance is non-binding, has “no legal force or effect,” does not change existing law and does not impose new obligations on any person. The FAQ therefore explains how the staff may view certain arrangements, but it does not replace legislation or formally amend the securities-law framework.
Buybacks, networks and staking receipts
One area covered by the update is token buyback programs. According to the SEC, issuers may be able to conduct buybacks for customers when a crypto system is functional and does not have a central party. In such circumstances, the arrangement would not necessarily represent a promise that a particular party will carry out the essential managerial efforts associated with an investment contract.
The agency also addressed functional crypto networks. It said services used to secure, maintain, improve or enhance a system, or to support network effects, would not automatically satisfy the Howey test when the network is functional.
Staking receipt tokens were included in the update as well. The SEC said these tokens would not always be classified as securities. Staking generally involves committing crypto assets to help support the operation or security of a blockchain, while a receipt token can represent a claim connected with that staked position. The agency’s wording leaves the classification dependent on the features of the particular arrangement rather than applying one result to every staking receipt token.
The guidance is significant because the treatment of crypto assets has remained divided between securities and commodities regulation. Securities generally fall within the SEC’s remit, while the CFTC is the federal commodities regulator. The agencies’ respective approaches affect how token issuers and other market participants interpret their obligations under US law.
Guidance follows CFTC move and legislative setback
The SEC’s announcement came after the CFTC issued similar staff guidance for token issuers the previous week. Both agencies acted days after the US Senate failed to pass a crypto market-structure bill that had been expected to clarify their responsibilities over digital assets.
The failed cloture vote on the CLARITY Act left the agencies addressing questions that supporters of the legislation had expected Congress to settle. SEC Chair Paul Atkins and CFTC Chair Michael Selig issued statements indicating that the regulators would continue addressing crypto policy even without new legislation.
According to Cointelegraph, the sequence highlights the gap between regulatory action and congressional lawmaking. The agencies can publish interpretations and staff positions, but the SEC’s own notice makes clear that the new answers do not have the force of law. For token issuers, network operators and crypto users, the update provides additional insight into the regulators’ current thinking while leaving the underlying legal framework in place.
SEC leadership changes as Peirce prepares to leave
The guidance update comes as the SEC faces a change in its senior leadership. Commissioner Hester Peirce said on Friday that she plans to resign on October 2, after eight years at the agency. Peirce, who is widely known in the crypto industry as “Crypto Mom” because of her support for digital-asset-friendly policies, is expected to become an associate professor at Regent University’s law school in Virginia in November.
After her departure, the SEC’s leadership will consist of Chair Atkins and Commissioner Mark Uyeda, both Republican commissioners. The panel normally has five members and is bipartisan. As of Monday, US President Donald Trump had not announced possible replacements for Peirce or the two remaining Democratic seats.
Moneyiar market picture
Moneyiar data at 22:03 on September 25, 2026, showed WINkLink (WIN) trading at $0.0000446226. The token was up 13.15% over 24 hours and 11.54% over seven days. This market data describes price performance only and does not indicate how the SEC’s guidance applies to WIN or any other individual digital asset.
