SEC Issues New FAQ on Crypto Token Classification, Responding to Decentralization Issues in the CLARITY Act

Techub News reports that the U.S. Securities and Exchange Commission (SEC) has released a new FAQ on cryptocurrency token classification, aiming to clarify its token classification framework. This FAQ is seen as a response to the decentralization issues that the CLARITY Act will address at the legal level. The FAQ content covers distinctions between decentralized governance and the use of legal entities (such as DUNAs), the difference between permissioned and permissionless systems, and the differences between "functional" systems and "decentralized" systems. @EleanorTerrett tweeted that this move aims to clarify some decentralization issues that the CLARITY Act will resolve legally.