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

Claim

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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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Quotes that support the claim

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.

Sources

What are the Howey test and its implications for cryptocurrency?

Does Crypto Pass the Howey Test?

Supporting arguments

If, by following the guidance of Howey test, SEC qualifies an asset to be a security, it has to comply with the requirements of securities laws

Topics

Requirements and implications of Howey test

Referenced by

The implications of the Howey test for cryptocurrency are significant, as the test provides a framework for determining whether a particular cryptocurrency offering should be classified as a security under U.S. law. If a cryptocurrency offering meets the criteria outlined in the Howey test, it may be considered a security and subject to federal securities laws.

Crypto

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.

Crypto