Michigan Senate candidate Abdul El-Sayed has drawn attention for his stance against corporate stock buybacks following General Motors’ recent announcement of a $20 billion repurchase program. El-Sayed, running as a Democrat in the upcoming November Senate race, criticized the automaker’s leadership on social media, calling for stock buybacks to be made illegal and arguing that companies should allocate more resources toward workers and product innovation.
Political reactions and GM’s response
General Motors, a leading US automaker, recently unveiled what workers’ union officials described as the largest stock buyback in US automotive history. The United Auto Workers (UAW), representing thousands of GM employees and currently endorsing El-Sayed, publicly condemned the decision. In a statement, UAW President Shawn Fain referred to the buyback as “legalized mass looting,” noting that CEO Mary Barra received compensation of $48 million in 2025.
El-Sayed’s main Republican rival, Mike Rogers, who previously served in the US House of Representatives, also criticized GM for prioritizing profits over people. Both candidates have voiced support for greater corporate accountability in the lead-up to the Michigan Senate election.
GM addressed the criticism, stating that its primary focus is on investing in both its business and its employees. The company reported it has reinvested over $100 billion since 2020. GM has repurchased about $29.5 billion in stock since 2023, with CEO Mary Barra describing company shares as currently undervalued.
| Company/Individual | Buyback Amount | Comment |
|---|---|---|
| General Motors | $20 billion (latest), $29.5 billion since 2023 | Called ‘legalized mass looting’ by UAW |
| Mary Barra (CEO) | $48 million (2025 compensation) | Shares called undervalued |
A recent Marist poll conducted from October 15 to 18 put El-Sayed at 50% and Rogers at 48% among likely voters, reflecting a close race in the state.
Buybacks in traditional and crypto markets
El-Sayed’s stance targets corporate stock buybacks, which involve public companies purchasing their own shares. The practice has drawn significant criticism from unions and some politicians for its perceived focus on shareholder returns rather than investment in employees or development.
In the broader financial sector, companies like Strategy Inc.—formerly known as MicroStrategy—have also engaged in buyback practices aligned with traditional corporate methods. SEC filings show that Strategy’s board increased the limit for its digital credit securities repurchase program from $2.0 billion to $3.0 billion, leaving $1.16 billion still available for future repurchases. The company recently bought back nearly 1.94 million shares of its Series A Perpetual Stretch Preferred Stock (STRC) for $193.1 million. Additionally, Strategy has a $1.0 billion buyback authorization open for its common stock, MSTR.
El-Sayed’s call for a ban would directly impact this type of buyback, which remains common among listed corporations.
Mini dictionary: Strategy Inc. is a business intelligence and Bitcoin holding company recognized for its large Bitcoin treasury. Previously named MicroStrategy, it is publicly listed and frequently engages in both crypto and traditional stock buybacks.
Token buybacks and regulatory clarity
The cryptocurrency sector has seen a rise in a different form of buyback, known as token buybacks. Under this approach, decentralized protocols use earnings from trading activity to purchase and often destroy (burn) tokens, reducing supply and potentially increasing value for holders. This method is considered distinct from corporate share buybacks and is not targeted by El-Sayed’s proposed ban.
Regulatory clarity for token buybacks improved following recent guidance from the SEC’s Division of Corporation Finance. The SEC clarified that buybacks for operational crypto networks do not automatically make the underlying token a security if publicly announced. This interpretation has given crypto projects greater confidence in using token buybacks as a mechanism for value management.
A notable example is Hyperliquid’s Assistance Fund, which automatically spends 99% of qualified trading fees to buy and burn HYPE tokens. The Hyperliquid Policy Center has petitioned the SEC to incorporate these guidelines directly into upcoming crypto asset regulations. Total token buybacks recently reached a peak of $638 million, highlighting their increasing prevalence within the sector.
General Motors said its “first priority is investing in our business and our employees,” citing over $100 billion reinvested since 2020, while representatives from the United Auto Workers described the $20 billion buyback as “legalized mass looting,” referencing CEO Mary Barra’s $48 million compensation.
