[SEC Updates Crypto Asset FAQ, Clarifies "Central Party" Determination Criteria] According to a report by Jinse Finance on November 2nd, the SEC's Department of Corporate Finance updated its frequently asked questions (FAQs) regarding the application of federal securities laws to crypto assets, adding three new questions and answers: Participants in a broad governance framework who are unrelated, have no agreement or tacit agreement (including through delegation) to act in concert are generally not considered "central parties." "Central party oversight participation" refers to a party's unilateral authority at the protocol, validator, or user levels to control access, change voting procedures, modify rule code, or rescind transactions. Significant operations entirely executed automatically by rule code, or discretion exercised solely through the broad governance framework, generally do not constitute a central party. "Functionality" and "decentralization" are different concepts. This FAQ represents staff opinions and does not have rule or regulatory force. It is related to the interpretative release on March 17th and the proposed "Crypto Asset Regulation Act" on August 18th.