The SEC's staff said promoting a network's current uses generally does not create an expectation of profit. The comment appears in a new SEC crypto FAQ that also addresses token buybacks and network upgrades. Crypto builders and holders should care because this shapes how projects can market technology without triggering U.S. securities law.
What actually happened
SEC staff addressed the issue in a crypto FAQ referenced by The Block on 25 September 2026. The staff said promoting a network's current uses generally would not create an expectation of profit. The report's headline indicates the same FAQ also covers token buybacks and network upgrades. The Block did not include further direct quotes or details about who wrote the FAQ. No effective date or full text was provided in the available reporting. The statement touches on the "expectation of profit" element. That element is central to the Howey test, the legal standard U.S. courts use to decide if an asset counts as a security.
How we got here
Crypto companies have faced years of uncertainty over how marketing affects securities status. U.S. law generally asks whether investors expect profit from the efforts of others. That question has shaped many token disputes. The new FAQ tries to answer part of it for buybacks, network upgrades and promotional language, based on the report's framing. Beyond the single line about promoting current uses, the available reporting does not detail past guidance or specific cases the FAQ addresses. That gap limits how much history this report alone can support.
Why this matters for you
For builders, the comment suggests that describing what a network already does may carry less securities risk than describing future returns. For holders, it signals regulators may draw a sharper line between utility marketing and investment pitches. For users of crypto apps, clearer rules could mean more straightforward disclosures about what a token does today versus what it might become. None of this is guaranteed. The FAQ is guidance from staff, not a formal rule or court decision. Companies and investors should expect case by case scrutiny until courts or the SEC issue firmer, binding standards on profit expectations and marketing.
The bigger question
Where exactly is the line between promoting what a network can do today and implying what it might be worth tomorrow? Regulators, builders and token holders may answer that question differently. A clearer standard could reduce disputes over crypto marketing. But drawing that line precisely is difficult, since almost any mention of a network's usefulness can be read as a hint about future value. How regulators and courts eventually settle this could shape crypto marketing rules worldwide, not only in the United States.
What to watch
The FAQ was reported on 25 September 2026, but no compliance deadline or comment period was disclosed in available coverage. Watch for the SEC to publish the full FAQ text, and for reactions from crypto trade groups and legal analysts. Further staff statements or enforcement actions could clarify how the profit-expectation standard applies to token buybacks and upgrades in practice.
