The U.S. Securities and Exchange Commission updates FAQs on crypto assets, confirms XRP commodity st

The U.S. Securities and Exchange Commission updates FAQs on crypto assets to confirm XRP commodity attributes

On September 28, 2026, the U.S. Securities and Exchange Commission (SEC) Corporate Finance Department released the latest revision of FAQs on crypto assets. The update builds on the original version dated September 25 of the same year and continues the spirit of a landmark explanatory announcement issued in March this year that classified XRP as a digital commodity.

Key differences in classification standards

Well-known analyst EGRAG CRYSTPTO took to social media to explain in detail the impact of the SEC's latest guidance, pointing out that the document is important for the broader legal framework for regulating crypto assets. To be clear, this updated FAQ does not introduce new legal provisions, but provides detailed employee guidance on how the SEC interprets crypto asset classifications.

In a prominent section, SEC staff clarified that the term "crypto asset" does not automatically mean that the asset belongs to an investment contract governed by securities regulations. The SEC emphasizes that functionality, utility and decentralization are core elements of evaluation, and that crypto assets running on functional networks are not inherently classified as investment contracts.

The Interpretative Announcement in March this year officially recognized XRP as a digital commodity. The latest FAQ update strengthens this status and clarifies the criteria that cryptoassets need to meet in order to avoid being classified as securities.

Network functions and legal thresholds

A key topic in the revised FAQ is how network capabilities affect regulatory assessments. The guidelines note that once an encrypted network has implemented a functional and decentralized structure, activities such as protecting, maintaining, or upgrading the network do not automatically meet the "necessary management effort" criteria under the Howey Test.

This distinction is crucial because the Howe test is a tool used in the United States to determine whether an asset is a security. Excluding regular network activity from the scope of "necessary management efforts" narrows the definition and provides greater regulatory certainty for projects such as XRP.

In addition, the document clearly stipulates that utility-centered publicity does not necessarily create obligations or commitments to necessary management actions. The guide also clarifies that if a functional crypto system without a central leader announces a repurchase of tokens, this does not automatically constitute evidence of committed management behavior, thereby providing greater flexibility for decentralized platforms.

Operational Impact and Evolving Regulation

This FAQ update is one of a series of actions the SEC has taken since 2016 to provide further clarity on digital assets. With the release of the explanatory announcement in March and the continuous evolution of the September guidance, the regulatory framework for crypto assets is becoming increasingly clear, especially for assets such as XRP. Agencies evaluating XRP can now benefit from enhanced employee-level guidance that supports its status as a commodity.

Regulatory analysts emphasize that in today's rapidly changing crypto environment, monitoring technical indicators, regulatory trends and investor behavior is becoming increasingly important. The Meme Token market in particular demonstrates rapid changes driven by Internet trends. For example, reports showed that a deal involving "Niu Lai" converted a $99 investment into approximately $370,000 in a few days. In these volatile markets, tracking investors 'timing and token choices is crucial.

At the same time, aggregation applications such as Fomo App integrate functions such as token discovery, trading, social dynamics, investor leaderboards and real-time notifications into a one-stop platform, allowing users to pay close attention to the performance of memocoins and the trends of investors. This tool is of great value for seizing opportunities in a rapidly changing market environment.

The revised FAQ once again emphasizes that focusing on the promotion of the current functionality of the encryption system does not mean that the project team has made a management commitment, especially if the platform is already functional and decentralized. This development provides more clarity for decentralized networks that meet regulatory standards.