Brief

SEC Issues Non‑Binding Crypto Guidance After CFTC Move

The U.S. Securities and Exchange Commission has issued a set of FAQs that clarify how its securities laws apply to certain crypto assets, following a comparable update from the Commodity Futures Trading Commission.

By Felo News Desk · Published Tue, 29 Sep 2026 01:26:08 GMT

The U.S. Securities and Exchange Commission (SEC) published a set of frequently asked questions on Friday that explain how its securities laws apply to specific types of crypto assets and transactions. The guidance, described by the agency as "non‑binding" and having "no legal force or effect," was issued a day after the Commodity Futures Trading Commission (CFTC) released similar staff answers.

Scope of the Guidance

The SEC’s FAQs address how the agency will consider digital asset products under the Howey test for investment contracts. Token issuers can conduct buy‑back programmes for customers if the crypto system is functional and has no central party, meaning it would not be treated as a representation or promise to undertake essential managerial efforts. The guidance also states that a functional crypto network that provides services to secure, maintain, improve or enhance the system, or to facilitate network effects, would not necessarily satisfy the Howey test. Staking receipt tokens are likewise not automatically classified as securities.

Timing and Context

The update follows the Senate’s failure to advance the Digital Asset Market Clarity Act, a bill that many expected to clarify the regulatory roles of the SEC and CFTC. The SEC and CFTC released their staff answers days after the Senate vote, signalling that the agencies will continue to shape crypto regulation in the absence of new federal legislation. The SEC’s move comes as Commissioner Hester Peirce, known as "Crypto Mom," announced her resignation effective 2 October. Peirce, who led the agency’s Crypto Task Force, will join Regent University as an associate professor of law. With her departure, the SEC’s leadership will be led by Chair Paul Atkins and Commissioner Mark Uyeda, both Republicans, leaving two seats vacant for the Democratic party.

Political Implications

SEC Chair Paul Atkins and CFTC Chair Michael Selig issued statements indicating that the agencies would address crypto regulation without congressional action. The guidance also comes amid a $11.4 million spend by the Defend American Jobs PAC, affiliated with the Fairshake group, on ads supporting Ohio Senator Jon Husted and opposing Democrat Sherrod Brown.

Key facts

SEC issued non‑binding FAQs on crypto assets (cointelegraph.com)
Guidance mirrors a similar CFTC update (cointelegraph.com)
SEC’s FAQs clarify Howey test application to token buy‑backs and staking tokens (cointelegraph.com)
Commissioner Hester Peirce announced resignation effective 2 October (cointelegraph.com)
SEC leadership will be chaired by Paul Atkins and Mark Uyeda after Peirce’s departure (cointelegraph.com)

Background

The guidance follows the Senate’s failure to advance the Digital Asset Market Clarity Act, which would have clarified regulatory roles for crypto assets.