SEC Narrows Crypto Buyback Guidance to Protocols With No Central Party

The SEC's Division of Corporation Finance added the phrase "and has no central party" to its crypto FAQ on Sept. 28, meaning a token buyback announcement avoids being a promise of essential managerial efforts only for fully decentralized protocols. Protocols where a foundation or team retains control over parameters or operations may still face securities law.

• The Sept. 28 edit added four words to the answer to Question 2.5
• Condition: the crypto system is functional and has no central party
• Protocols controlled by a foundation or team do not qualify
• Hyperliquid's Assistance Fund is cited as the structural archetype