SEC issues new crypto Howey FAQs as Bitget resumes Bitcoin withdrawals
In brief
- SEC's new FAQs apply the Howey test to token buybacks, network development and staking receipt tokens.
- SEC guidance is non-binding and doesn't change existing law.
- Bitget resumed BTC withdrawals after a Sept. 24 breach, with the loss revised to $387.5 million.
- Ethereum's Hegotá upgrade, planned for 2027, could be the network's last "normal" fork, Vitalik Buterin said.
SEC builds on its March Howey interpretation
The new SEC FAQs expand on the agency's March interpretation of how the Howey test applies to digital assets. The SEC said buybacks may not constitute the managerial efforts associated with an investment contract when a crypto network is already functional and lacks a central party. Work to maintain or improve a functioning network may also fall outside that standard (and staking receipt tokens wouldn't automatically be treated as securities).
It's non-binding, though, and doesn't change existing law.
The update followed similar CFTC guidance. It also came days after the Senate failed to advance the CLARITY Act, which would've split digital asset oversight between the SEC and CFTC.
Bitget restarts BTC withdrawals after the breach
Bitget said it resumed Bitcoin withdrawals on Monday after suspending them following last week's security incident, with more assets and networks to follow in the coming days. According to the exchange, the Sept. 24 breach compromised part of its hot and warm wallet infrastructure while its cold wallets stayed secure. Bitget later revised the stolen amount from $351.6 million to $387.5 million after accounting for additional transfers on Zcash and Tron.
CEO Gracy Chen said during a Monday ask-me-anything session that BTC withdrawals on the Bitcoin network and BNB Smart Chain came back first. Ether and Tether's USDt would follow as security checks progress, she said.
“We restored BTC first because the withdrawal pipeline is the first to be completed,” Chen said
Cointelegraph reported that the attacker has continued moving stolen crypto through THORChain.
Buterin flags Hegotá as a possible last "normal" fork
Ethereum co-founder Vitalik Buterin said Hegotá could be the network's last "normal" fork before development shifts toward recursive STARKs, automated formal verification, optimized consensus and quantum-safe cryptography. On Sunday, he said Hegotá (planned for 2027) is likely the final upgrade whose features would still be recognizable to someone familiar with Ethereum in 2015.
What does that mean for builders? Cointelegraph said the shift could move more Ethereum computation offchain, with the base layer used to verify results and settle transactions.
Frequently asked questions
What did the SEC's new crypto FAQs say about token buybacks?
The SEC said buybacks may not constitute the managerial efforts associated with an investment contract when a crypto network is already functional and lacks a central party. The FAQs expand on the agency's March interpretation of how the Howey test applies to digital assets.
Are staking receipt tokens securities under the new SEC guidance?
Under the guidance, staking receipt tokens would not automatically be treated as securities. The guidance is non-binding and doesn't change existing law, according to Cointelegraph.
How much was stolen in the Bitget breach?
Bitget revised the stolen amount from $351.6 million to $387.5 million after accounting for additional transfers on Zcash and Tron. The Sept. 24 breach compromised part of its hot and warm wallet infrastructure, while its cold wallets remained secure.
