Who really controls a crypto project? Inside the SEC’s new guidance

SEC staff have clarified how shared governance fits into the agency’s crypto framework. The questions reach beyond token votes to the people who can change a network, control access and carry out decisions after a proposal passes. SEC staff have added 3 answers to their crypto asset guidance explaining how governance participation and control over a network fit into token classification. The SEC’s Division of Corporation Finance updated its FAQ on November 2, adding questions 1.4 to 1.6. The answers distinguish ordinary participation in shared governance from a coordinated group with effective control. Their starting point is that unrelated participants do not generally become a controlling group simply by taking part in a governance system. The same principle can apply where governance operates through an organisation, association or foundation.

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