The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly issued Interpretive Release 33-11412, which classifies most native tokens of decentralized networks as digital commodities. The release clarifies that staking, liquid staking derivatives (LSDs), wrapped tokens, and compliant airdrops do not constitute securities offerings.
The new framework introduces three innovative fundraising and treasury models. Liquid Genesis Staking Pools (LGSP) utilize staked assets like ETH and SOL, offering dual incentives from LSD yields and protocol tokens. Commodity Pre-Participation Agreements (CPA) provide future network participation rights in exchange for work or capital contributions, avoiding token presales. Separation-Accelerated Revenue Rights (SARR) link decreasing revenue shares to decentralized milestones, encouraging teams to expedite decentralization. These models, built on existing smart contract components, have shown potential in simulations to sustain long-term protocol treasuries and team expenses.
SEC and CFTC Define New Compliance Framework for Token Sales
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