SEC clears regulatory hurdle as crypto token buybacks hit record $638 million

The SEC's Division of Corporation Finance clarified regulatory treatment of crypto token buybacks for functional networks, stating buyback announcements for non-security tokens fall outside investment contract interpretation, enabling projects with mature networks to use revenue for token repurchases. This comes as crypto token buybacks hit a record $638 million in 2026, led by Hyperliquid and Pump.fun, reflecting a growing regulatory framework guiding projects through fundraising, development, transition, and mature network stages.

This Wire brief sits within Fusion42's coverage of Crypto & Web3.