SEC division updates token classification FAQ to clarify governance
CIE News ·
Based on an official regulatory or court document.
The SEC Division of Corporation Finance added questions 1.4 to 1.6 to its crypto FAQ on November 2, clarifying how decentralized governance and voting fit into its central-party framework.
On November 2, 2026, the staff of the U.S. Securities and Exchange Commission's Division of Corporation Finance published an update to its digital asset FAQ by adding questions 1.4 through 1.6. As reported by crypto.news, the new entries detail how decentralized governance, access controls, and network decentralization factor into the staff's token classification framework.
Under question 1.4, the staff stated that unaffiliated participants who take part in system governance without separate agreements to act together are generally not treated as a controlling group. crypto.news noted that this approach extends to governance operating within legal organizations or associations where participation relies on holding native tokens, provided the participants lack concentrated operational, economic, or voting control. The SEC staff noted that these FAQs do not carry statutory legal force or amend existing regulations.
Key facts
- FAQ updated Nov. 2, 2026
- Added questions 1.4 to 1.6
- SEC Corporation Finance
- Non-binding guidance