The Howey test derives its name from a landmark U.S. Supreme Court case in 1946, SEC v. W.J. Howey Co., that established a blueprint for whether a transaction qualifies as an investment contract. If an asset meets the test criteria—including a cryptocurrency—it qualifies, and the Securities and Exchange Commission is obligated to analyze it further to see if it actually is an investment contract.

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The Howey test derives its name from a landmark U.S. Supreme Court case in 1946, SEC v. W.J. Howey Co., that established a blueprint for whether a transaction qualifies as an investment contract. If an asset meets the test criteria—including a cryptocurrency—it qualifies, and the Securities and Exchange Commission is obligated to analyze it further to see if it actually is an investment contract.

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Objective of a Howey test is to provide a framework for an asset to be qualified as a security
If asset meets Howey test criteria, SEC has to determine if an asset is an investment contract

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Does Crypto Pass the Howey Test?

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https://www.investopedia.com/does-crypto-pass-the-howey-test-8385183

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Does Crypto Pass the Howey Test?

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If asset meets Howey test criteria, SEC has to determine if an asset is an investment contract

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Objective of a Howey test is to provide a framework for an asset to be qualified as a security

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