An update to the Division of Corporation Finance's crypto FAQs limits the buyback answer to systems that have "no central party," narrowing guidance first issued Sept. 25.
The Securities and Exchange Commission's staff issued new crypto guidance on Sept. 25. By Sept. 28, part of it had changed.
The Division of Corporation Finance's frequently asked questions on applying securities laws to certain crypto assets and transactions now show two dates: originally issued Sept. 25, 2026, and updated Sept. 28, 2026. The answer on token buybacks was amended to add the words "and has no central party." The staff also posted a redline comparing the two versions.
Why buybacks matter
Buybacks are one of the main tools token projects use to return value to holders, using revenue or treasury funds to purchase tokens in the market.
The added condition narrows who can rely on the answer. Many token projects are run with a foundation, a company or an active core team directing decisions, and those projects may not meet a standard built around having no central party. The revision followed concerns that the first version was drawn too broadly.
What the FAQs are
The FAQs are staff guidance, not a rule adopted by the Commission. They build on the Commission's March 17, 2026, interpretive release and its Aug. 18 Regulation Crypto Assets proposal, and they also address staking and marketing.
The quick rewrite comes as the agency is about to shrink. Commissioner Hester Peirce, who leads the SEC's crypto task force, leaves on Friday, which will leave the Commission with two members.
Two readings
One reading is that the narrower wording is a correction that makes the staff's position clearer and harder to stretch. Projects are less likely to build programs on comfort the Commission later withdraws.
The other reading is that projects built around buybacks have lost the staff support they thought they had three days earlier. For tokens that depend on buybacks to support their value, that raises the regulatory risk of the model.
What to watch
Whether projects with foundations or core teams restructure or pause buyback programs will show how the market reads the change. The final version of Regulation Crypto Assets is where the Commission itself would address the question.