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Division of Corporation Finance staff updated digital commodity guidance on Nov. 2, addressing DAO voting structures and centralized control thresholds.
Key point 1 of 3
01
SEC Corporation Finance staff added three FAQ responses on Nov. 2 clarifying the definition of a controlling group in crypto governance.
Key point 2 of 3
02
Unaffiliated voters without formal or informal pacts to act in concert generally do not form a central controlling party.
Key point 3 of 3
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The guidance states staff views have no binding legal force and make no determination on the security status of any specific token.
Context
The guidance builds upon the SEC's March 17 Interpretive Release regarding digital commodities, which excluded networks without central controllers from securities laws.
Why it matters
DAOs and foundation-backed networks gain clearer administrative guidelines regarding token voting and delegation, mitigating immediate fears of automatic group classification.
What to watch
Market observers are monitoring public reactions and subsequent comment filings related to the SEC's proposed Regulation Crypto Assets framework.
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