SEC Releases Digital Asset FAQ, Clarifying the Scope of the Howey Test

Odaily: According to a Fox Business crypto reporter on X, SEC staff has released a new FAQ explaining how the Commission's March digital asset interpretive guidance applies to token functionality, staking receipt tokens, and investment contracts.

The guidance states that once a network is functional, services provided to maintain, improve, or develop the network generally do not constitute "essential managerial efforts" under the Howey Test. The FAQ reflects only staff views and does not carry the force of law.