SEC staff clarifies when crypto governance counts as a central party

The SEC's Division of Corporation Finance expanded its crypto asset guidance, adding FAQ clarifications on when blockchain governance participants constitute a "central party." Per the new guidance, unaffiliated participants in broad-based governance generally are not treated as one controlling group simply because they vote on proposals or coordinate through a foundation — absent agreements, arrangements, or understandings to act together.

• The update also lists unilateral powers that establish oversight of a network and separates pure functionality from decentralization.
• The clarifications, shared via Index Coop's channel, follow the SEC's amended "exchange" definition and its focus on when token governance signals central control.