SEC Publishes FAQs on How Federal Securities Laws Apply to Crypto Assets

SEC publishes FAQs explaining how federal securities laws apply to crypto assets and related transactions.

The U.S. Securities and Exchange Commission has published a new set of frequently asked questions addressing how federal securities laws apply to certain crypto assets and transactions involving them. Cointelegraph reported the development in a post on X.

The FAQs were issued by the SEC’s Division of Corporation Finance on Sept. 25, 2026. The agency said the document provides staff views on questions arising from its interpretation of federal securities laws in the crypto asset market.

SEC Addresses Classification of Crypto Assets

The questions cover several areas of the SEC’s March 2026 interpretation concerning the classification of crypto assets and when particular assets or transactions may fall within federal securities laws.

Among the topics addressed are functional and decentralized crypto systems, staking receipt tokens and redeemable wrapped tokens. The SEC staff also explains how it distinguishes a “receipt” from other financial instruments, including whether the instrument provides holders with additional financial benefits beyond ownership of an underlying deposited asset.

The FAQs also address crypto assets that may be subject to an investment contract. One question examines when promotional or marketing communications could amount to representations or promises to undertake essential managerial efforts.

According to the SEC staff, promoting a crypto system’s current utility and capabilities would likely not, by itself, constitute such a promise. The agency said the determination depends on the facts and circumstances involved.

Guidance Covers Functional Crypto Systems and Buybacks

Another section considers what activities may constitute essential managerial efforts after a crypto system becomes functional. The SEC staff states that services to secure, maintain, improve or enhance a functional system, or facilitate network effects, would not constitute essential managerial efforts under the circumstances described in the guidance.

The FAQs also examine buyback programs involving non-security crypto assets. The staff states that an issuer’s announcement of a buyback program for a functional crypto system would not constitute a representation or promise to undertake essential managerial efforts. For a system that is not functional, however, the announcement could have a different legal characterization if the buyback is presented as creating yield or returns for token holders.

The document also discusses the role of trading platforms offering secondary markets for crypto assets, stating that such a platform would be considered a promoter only if it meets the definition of “promoter” under Securities Act Rule 405.

FAQs Do Not Create New Legal Obligations

The SEC emphasized that the FAQs represent the views of the staff of its Division of Corporation Finance rather than a rule, regulation or statement of the Commission.

The agency also said the Commission has neither approved nor disapproved the content. Like other staff guidance, the FAQs have no legal force or effect, do not alter or amend applicable law, and do not create new or additional obligations for any person.

The FAQs build on the SEC’s March 2026 interpretation concerning the application of federal securities laws to certain crypto assets and transactions. That interpretation became effective March 23, 2026.

The latest FAQs were issued Sept. 25, 2026, adding staff-level answers to specific questions surrounding the SEC’s existing crypto asset interpretation.

writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
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