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SEC Clarifies Crypto Rules on Decentralization
The U.S. Securities and Exchange Commission (SEC) has updated its FAQs to clarify how digital commodities, staking receipt tokens, and investment contracts are classified under U.S. law. The guidance addresses when people involved in managing a crypto network can be considered a central party and how much control they must have for a network to remain decentralized. The SEC's Division of Corporation Finance released the new guidance on November 2, setting new standards for decentralization, governance, and functionality in the crypto space. The update comes as U.S. lawmakers continue working on the CLARITY Act to create clearer rules for crypto assets and define the roles of the SEC and the Commodity Futures Trading Commission (CFTC).