What Is the Concept of ‘Sufficient Decentralization’ in Crypto Regulation?

'Sufficient decentralization' is a concept, often associated with SEC guidance, where a network is deemed to be so decentralized that the efforts of a central team no longer drive the token's value. This state is reached when token holders genuinely control governance, and the technology is self-sustaining.

Once achieved, the token is no longer considered a security under the Howey Test.