Former Federal Prosecutor Says SEC Crypto FAQ Lacks Legal Authority

Former federal prosecutor Renato Mariotti pointed out that the cryptocurrency FAQ released by the SEC on September 25 and updated on September 28 is merely a non-binding employee guidance that can serve as a reference but is not a "safe harbor." The FAQ addresses topics such as staking receipt tokens, decentralized network buyback programs, and how marketing communications fit into the Howey test, but does not name any specific assets or protocols, providing only general statements. Mariotti stated that the FAQ reflects the views of SEC staff, has not been formally approved by the commission, and lacks legal effect; since the rules proposed on August 18 are not finalized and the Clarity Act is stalled in Congress, the industry still needs to rely on staff comments to make its own judgments regarding disclosures and token design.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.