SEC: New FAQs Clarify Digital Asset Rules

SEC staff released new FAQs clarifying the March interpretive release on digital assets, detailing how it applies to token functionality, staking receipt tokens and investment contracts. The guidance states that once a network is functional, services to maintain, improve or grow it generally would not count as “essential managerial efforts” under the Howey test. These FAQs reflect staff views and carry no legal force or effect, updating prior SEC digital asset guidance on Howey test application to crypto and staking receipt tokens regulation.