SEC Just Made Regulation Easier For Governance Tokens Like Uniswap

On November 2, SEC staff clarified that thousands of investors who cast governance votes in a truly decentralized network would not, as a rule, be treated as a single controlling bloc, meaning a cryptocurrency without central control may qualify as a digital commodity rather than a security. Governance tokens allow holders to decide on project operations; UNI holders can vote on Uniswap changes, including protocol spending. The staff linked this to its March crypto framework, requiring broad distribution of voting power; if a firm or small group can alter rules, limit access or overrule decisions, that can still show central control. The guidance is nonbinding and not law, and future regulators may differ.