X account @milesjennings said that a certain FAQ failed to distinguish between types of buybacks, potentially creating a loophole in securities law

AT A GLANCE

The poster questioned whether a certain FAQ failed to distinguish between the types of buybacks, stating that its interpretation could become a major loophole for circumventing securities law.

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The lack of any distinction between programmatic buybacks and discretionary buybacks in this FAQ is wild.

Under this read, any startup can tokenize any revenue stream, sell those tokens to the public, and avoid securities laws.

Maybe the biggest loophole ever. https://t.co/B2kKWKrSJc

Key points

The poster stated that the FAQ does not distinguish between programmatic buybacks and discretionary buybacks.
The poster argued that, under this interpretation, any startup could tokenize a revenue stream and sell the related tokens to the public.
The poster claimed that this practice could circumvent securities law and may constitute a major loophole.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

This is a critique of a certain FAQ and its legal implications. The poster is concerned that the FAQ does not distinguish between programmatic buybacks and discretionary buybacks, allowing startups to circumvent securities law by issuing tokens linked to revenue streams. The original text reflects the poster's assessment and does not present the FAQ content or establish that this legal conclusion is valid.

Why it matters to readers

If this interpretation is valid, whether tokenized revenue streams are subject to securities law could become a matter of significant dispute; however, the available evidence only confirms that the poster raised this concern.

Beginners should treat this as an unverified legal opinion, rather than a regulatory rule that is already in force or has been confirmed. Do not determine whether a token issuance or buyback arrangement is lawful based solely on this post.

Risks and unknowns

The original text, title, or issuing entity of the FAQ at issue was not provided.
It cannot be confirmed whether the FAQ indeed failed to distinguish between programmatic buybacks and discretionary buybacks.
It cannot be confirmed whether tokenizing revenue streams and selling tokens to the public can circumvent securities law.
“Largest loophole” is a subjective assessment and lacks supporting documentation.

X account @milesjennings said that a certain FAQ failed to distinguish between types of buybacks, potentially creating a loophole in securities law

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Why it matters to readers

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