Former SEC Chief of Staff Amanda Fischer recently asserted that token buybacks conducted through decentralized autonomous organizations (DAOs), such as Uniswap, could be classified as securities transactions, citing a 2017 SEC guidance. She emphasized that proposed crypto market structure legislation supported by major industry players would not permit token dividends or buybacks, which are mechanisms to enhance value for token holders.
John Deaton, a prominent crypto lawyer, promptly criticized Fischer's remarks, highlighting the SEC's historical inconsistency in enforcement and messaging. Deaton pointed out that the 2017 guidance led to 57 enforcement actions, but subsequent clarifications in 2019 by then-Chair Jay Clayton and more recent views under the Trump administration suggested that most tokens do not meet securities criteria. He also referenced Fischer's advice to the Biden-era SEC to sue Ripple Labs, which ultimately failed as XRP was not deemed a security, with Judge Analisa Torres ruling that only secondary sales to institutional investors constituted securities transactions.
The debate has sparked backlash from other crypto legal experts, including Marvin Ammori, former CIO of Uniswap, who questioned the clarity of SEC regulations given the agency's courtroom losses. DeFi platforms like Uniswap, Aave, Lido, Hyperliquid, and Pumpfun continue token buybacks to boost holder value, but the SEC has not provided formal classification for these activities. Uniswap CEO Hayden Adams noted that current buyback initiatives assume favorable regulatory conditions, underscoring the industry's sensitivity to policy shifts.
As Congress considers new market structure legislation, Deaton and others argue for clearer legal standards, contending that outdated SEC narratives should not dictate token management in the U.S. digital economy. The unresolved regulatory uncertainty leaves market participants awaiting explicit guidance from regulators.
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