[US SEC Adds Crypto Asset FAQ: Broad Governance Participants Generally Do Not Constitute Centralized Entities] According to the US Securities and Exchange Commission (SEC) website, the SEC's Division of Corporate Finance updated its Frequently Asked Questions (FAQ) on crypto assets on November 2nd, adding three answers related to crypto asset classification. Among them, it states that participants in the broad governance framework of a functional crypto system, if unrelated to each other and without agreements, arrangements, or tacit understandings for coordinated action, are generally not considered "centralized entities." The same conclusion applies when the governance system belongs to an organization, association, or foundation. The FAQ also states that "oversight participation" by a centralized entity refers to its right to control access to the crypto system at the protocol, validator, or user level, such as unilaterally granting or restricting access, deciding on or changing voting processes for software upgrades, etc.; "functional" and "decentralized" are two different concepts. The above FAQ represents the views of SEC staff only and has no legal effect.