Mike Dudas highlights that paying fees or dividends to token holders could lead to the token being classified as a security by the SEC, specifically referencing Gary Gensler's stance. This legal risk currently limits how crypto projects can distribute value to holders in the US, making "buybacks" a common but potentially "retarded" alternative according to @0xkyle__. Investors should be aware that direct revenue sharing with token holders is largely unfeasible under current US regulations, impacting token valuation models.