Wu learned that the U.S. Securities and Exchange Commission (SEC) Division of Corporate Finance updated its FAQ on the Federal Securities Law for Crypto Assets on November 2nd. The FAQ clarifies that participants in a broad governance mechanism who are unrelated and lack concerted action arrangements beyond governance participation are generally not considered a single group. Even if they constitute a group, they must control the system's operations, economy, or voting to be considered a "central controller." The FAQ clarifies that "functionality" and "decentralization" are different concepts. Maintenance, upgrades, and services that promote network effects after the system is functional do not fall under the "critical management efforts" in the Howey test. If the system is functional and has no central controller, an issuer's announcement of a non-securities crypto asset buyback program does not constitute a commitment to undertake such management efforts; however, if the system is not yet functional and the issuer claims that the buyback will generate returns for token holders, it may constitute such a commitment. This FAQ represents the opinion of staff only and has no legal force. https://(wublock123.com)/news/sec-updates-crypto-asset-faq-governance-control-token-buybacks-securities-law-71197