The SEC’s Division of Corporation Finance updated its FAQ on federal securities laws and certain crypto assets, saying unaffiliated participants in a broad governance system generally do not form a defined group or “central party,” BlockBeats reported on Nov. 3.
What the staff FAQ says
The update says participants generally fall outside the “group of persons or entities” definition when they are not affiliated and have no separate agreement to act together. It describes central-party oversight as control over access at the protocol, validator or user layer, including changing upgrade or voting processes, controlling consensus access, modifying code, rolling back transactions or revoking access.
The FAQ distinguishes “functional” from “decentralized” systems and says the degree of decentralization depends on the facts and circumstances. The document represents staff views, not an SEC rule, regulation or commission statement, and carries no legal force.
Source: BlockBeats English report, published Nov. 3, 2026. SEC FAQ. Chinese source.