The U.S. crypto sector received two notable signals this week: fresh regulatory guidance from the Securities and Exchange Commission on token buybacks, and reports that Blockchain.com plans a major public listing. Both arrive as Bitcoin trades near $83,500 after slipping about 1.1% on Monday.
SEC Clarifies How Token Buybacks Fit Securities Law
The SEC's Division of Corporation Finance has updated its crypto FAQ, addressing a question that many token projects have been asking: does a buyback program turn a token into a security?
According to the guidance, announcing a buyback for a crypto network that is already functional does not, by itself, create an investment contract. Staff also noted that where no central party stands behind the program, the arrangement is unlikely to qualify as one.
The position is more cautious for projects that are not yet operational. If issuers promote a buyback as a source of returns for holders before the network works, the analysis can change.
The FAQ also says that once a system is functional, work to secure, maintain and improve it, or to support network effects, does not count as the kind of managerial effort assessed under the Howey test. The update builds on the SEC's March interpretive release and follows the recent failure of the Clarity Act to advance in the Senate, which leaves regulators applying existing law.
Why It Matters for Token Projects
Buybacks have become a popular way for protocols to show that revenue supports token value. The new language gives teams a clearer framework, particularly those built on decentralized networks. Projects with a strong central operator, or those that market buybacks as profit promises, still face closer scrutiny.
Blockchain.com Targets a $500 Million IPO
On the capital-markets side, Bloomberg reported that Blockchain.com is telling prospective investors it wants to list before the end of the year. The company is seeking about $500 million at a valuation of $4 billion to $6 billion, and sources say it could scale the offering down if needed.
The London-headquartered firm confirmed on May 21 that it had confidentially submitted a draft S-1 registration statement to the SEC. At that time, share count and price range had not been set, and the offering remains subject to market conditions and SEC review. A company spokesperson declined to comment on the latest report.
A Lower Valuation, a Stronger Business Case
The target sits well below the roughly $14 billion valuation the company held in 2022. It is also below the level implied by its 2023 Series E round, which raised $110 million and was led by Kingsway Capital. Sources cited by Bloomberg say the company has been profitable on an adjusted basis for three consecutive years, a rare selling point among crypto IPO candidates.
The listing plan comes after a quiet year for crypto offerings, as weak prices in early 2026 led several firms to delay. Kraken's parent company is also exploring a listing, though its timeline has reportedly slipped toward 2027.
What to Watch Next
For token issuers, the key question is how closely future buyback programs follow the guidance on functional networks and decentralization. For Blockchain.com, the next milestone is a public S-1 filing, which would reveal financials and final offering terms.
All figures are preliminary and based on public reporting. This article is for information only and is not investment advice.
