SEC updates explanation on cryptocurrency buybacks

The U.S. securities regulator SEC has revised its explanation regarding buyback programs for cryptocurrencies on September 28. The new guidelines emphasize that it matters whether there is a central party controlling the network, which affects the applicability of U.S. investment rules. A buyback program involves a crypto project repurchasing coins that are already in circulation with earned revenue, as is the case with the Raydium project. The SEC states that a buyback announcement in itself is not a promise of a project's success if the network operates without central control. However, the adjustment of the explanation does not change U.S. legislation. The SEC clarifies that the responses are not new rules and have not been officially approved by the entire commission. The assessment of a buyback depends on who governs the network and what has been promised to buyers.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.