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SEC staff guidance lifts concern over crypto token buybacks

Crypto projects spent about $638 million on token buybacks through late August 2026, with Hyperliquid and Pump.fun accounting for roughly 90% of the total.

Reported · Written up by our desk · Market Structure

CryptoSlate reports that crypto token buybacks faced a regulatory hurdle that has now been clarified by the SEC, after staff addressed the legal tension that has shadowed buyback programs since they began.

According to the outlet, the SEC Division of Corporation Finance said buyback announcements tied to a non-security crypto asset on a network that is already functional can fall outside the “essential managerial efforts” concept used in the Howey test.

The guidance also includes a warning for newer projects, with staff cautioning that pitching token buybacks on networks that are not yet functional as a source of yield or returns could support an investment-contract analysis.

Separately, Allium Labs data cited by CryptoSlate shows projects spent about $638 million on token buybacks through late August 2026, up from $545 million over the same stretch of 2025, with Hyperliquid at roughly $370 million and Pump.fun at about $200 million.

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