Unaffiliated Governance Voters Generally Aren’t a Controlling ‘Group,’ SEC Staff Say

Token holders voting through a crypto network’s governance system generally are not a controlling “group” under the SEC’s digital commodity framework, staff of the Division of Corporation Finance said in three answers they added to their crypto FAQ on Nov. 2 . The answers turn on one term. The SEC’s March 17 Interpretive Release says digital commodities are not securities, and it says the functional crypto system behind one has no central party overseeing participation or handing out rewards.