Injective: SEC Clarifies Buyback Guidance Affecting INJ Burn - 26 Sep 2026

The SEC has clarified that token buybacks conducted on a functioning network do not, on their own, make a token a security. The guidance bears directly on Injective's monthly onchain INJ buyback and burn, which uses protocol revenue to repurchase and burn tokens as its main value accrual mechanism. The clarification addresses a legal question that previously created uncertainty for buyback-based token models.For Injective, the guidance reduces regulatory risk around an automated, ongoing mechanism. The monthly buyback and burn runs without discretionary intervention, so clear treatment of buybacks on functioning networks supports the durability of the revenue-to-burn design. Investors can now evaluate the token's value accrual with less uncertainty about whether the repurchase process itself creates securities-law exposure.The clarification is not a blanket approval; it applies to buybacks on networks that are already functioning, which fits Injective's mainnet.The SEC just made it clear. Token buybacks on a functioning network do not, on their own, make a token a security.Since Mainnet launched in 2021, has bought back and burned over 7 million tokens, funded entirely by onchain revenue and verifiable by anyone. Most notably, it…