SEC: Maintaining a functioning crypto network is not considered a primary management effort according to Howey's criteria.

The U.S. Securities and Exchange Commission has indicated that existing crypto networks may not be eligible for the Howie test.

What's the news?
The organization's finance department of SEC stated in a frequently asked question about crypto assets on the 25th that maintaining security, maintenance and adding functionality to an already operational network may not generally be considered as efforts by others following Howey testing. Additionally, funding or sponsoring development projects to create network effects might fall within the same scope.

Why does it matter?
The Howey test is a framework used to consider what constitutes capital under U.S. securities laws, generally looking at whether money or property has been invested with the expectation of returns and those returns come primarily from other people's efforts. So when a project has a working network, the development team maintaining the system may be viewed more as an operational task than a mechanism that benefits its beneficiaries over others. This approach suggests that officials might view the status of the network and the role of developers as important variables but does not mean that every coin or platform will automatically fall under the definition of capital because it also looks at specific facts such as listing methods, ownership levels and power dynamics.

How does that affect crypto projects?
For projects that have already built and deployed a network, this approach may provide more legal reasoning to explain that system maintenance, upgrades, and feature additions are activities necessary for use rather than promises to make an impact on others. However, the project must also be wary of communications based on promises about these services; without real infrastructure and evidence that the network is working, it cannot meet this critical requirement. Furthermore, funding developers or side-projects to extend network performance might not be interpreted as someone else's effort if such support immediately links you with the quality of the system over your own assurance.

How will it affect Thai readers and the digital asset market?
For news observers in Thailand and the region, this news adds perspective when a crypto project announces that its network is ready to be used because the term "ready-to-use" may change risk assessments of holders. However, this US approach does not directly affect Thai regulators but has an impact on global digital asset analysis standards.

Things to know before interpreting.
This message does not specify a company name, specific currency or any market value and is not the final opinion of all courts or law enforcement agencies so interested parties should follow the full sentences of SEC's frequently asked questions and other statements including platform risk conditions, platform warnings and rules related to digital assets in Thailand.