SEC Staff Clarify How Decentralized Token Governance Is Assessed

US Securities and Exchange Commission staff have updated cryptocurrency guidance to clarify how independent token holders participating in decentralized governance may be treated under securities analysis.
According to the updated FAQs, independent holders taking part in decentralized decision-making generally do not, by that participation alone, constitute a central party responsible for managing a network.
The clarification could be relevant for DeFi projects seeking to understand how governance arrangements affect regulatory assessments.
However, the guidance is a staff interpretation rather than a binding rule or legal exemption. Whether a particular token or governance structure falls under securities laws still depends on its specific facts and circumstances.