On November 2, according to the SEC's Office of Corporate Finance website, the department updated the frequently asked questions regarding the applicability of federal securities laws to crypto assets, adding three new Q&As: Participants in a broad governance system who are not related, have no contractual arrangements or tacit agreements (including through delegation) to act in concert are generally not considered a 'central party'; 'Central party oversight participation' refers to the unilateral authority to control access, change voting procedures, modify rule code, or revoke transactions at the protocol layer, validator layer, or user layer, while significant operations are entirely executed automatically by rule code or discretion is exercised only by the broad governance system; 'Functional' and 'decentralization' are different concepts. This FAQ reflects staff opinions and does not have the force of rules or regulations, and is related to the interpretive release on March 17 and the proposed 'Crypto Asset Regulation' on August 18.
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