### Key Takeaways
#### What’s behind the pushback against former SEC execs?
Former SEC executives have been challenging the flawed perception that cryptocurrency had clear regulatory rules even as far back as 2017. Their insights highlight the evolving—and often ambiguous—nature of crypto regulations over the years.
#### What’s the status of token buybacks?
Token buybacks are generally seen as a way to drive value accrual to token holders. However, as of now, there is no formal classification from the SEC regarding token buybacks or token burns.
Armanda Fischer, a former SEC Chief of Staff, recently sparked debate with her claims about the status of token buybacks. She stated, “FYI: the crypto market structure legislation being contemplated by Congress & supported by the big crypto players generally would not allow token dividends/buybacks.”
This statement faced criticism from several crypto lawyers, including former U.S. Senatorial candidate John Deaton. Deaton highlighted that the SEC’s 2017 directive was followed by 57 enforcement actions, but clearer guidance came later—from former Chair Jay Clayton in 2019 and more recently, under the Paul Atkins regime—which suggested that most tokens are not securities.
Deaton further noted Fischer’s involvement in advising the Biden-era SEC to file a lawsuit against Ripple Labs. Despite this, XRP was ultimately cleared as a non-security, a decision reinforced by Judge Analisa Torres.
Deaton responded sharply, saying, “Here’s my response to Amanda, Gary Gensler, Jorge Tenreiro, and the rest of the old crew at the SEC: Shame on you. Take the loss with class.”
#### What’s next for token buybacks?
During the Trump administration, many of the Biden-era SEC crypto enforcement actions were rolled back. The only exception was the secondary sale of XRP to institutional investors, which was classified as a securities transaction. Nevertheless, XRP itself was deemed a non-security.
This raises an important question: Are token buybacks really securities transactions, as Fischer claims?
Several major crypto projects—including Hyperliquid [HYPE], Pumpfun [PUMP], Aave [AAVE], Lido [LDO], and recently Uniswap [UNI]—have doubled down on token buybacks to enhance value accrual for their token holders.
Whether such “value accrual for token holders” qualifies as a securities transaction remains unresolved and awaits clear regulatory guidance from the SEC.
Uniswap CEO Hayden Adams noted that the decision to implement token buybacks was made possible due to the current pro-crypto stance of the SEC under the current administration.
Similarly, other crypto lawyers have criticized Fischer’s position. Former Uniswap CIO Marvin Ammori remarked, “If the law was so clear, why did her SEC lose so many cases in court?”
#### Conclusion
The SEC’s approach to crypto tokens has significantly evolved since 2017. However, the question of whether token buybacks constitute securities transactions remains unsettled. The crypto industry and investors alike await a formal regulatory directive that can provide clarity on this important matter.
https://bitcoinethereumnews.com/tech/john-deaton-slams-ex-sec-official-over-claim-that-token-buybacks-count-as-securities/