How does the Howey Test determine if a cryptocurrency is a security?

1 answers

• Nov 28, 2021 · 3 years ago
  The Howey Test is a well-known legal test used to determine if a cryptocurrency should be classified as a security. It takes into account factors such as the investment of money, the expectation of profits, and the reliance on the efforts of others. If a cryptocurrency meets these criteria, it is likely to be considered a security. The Howey Test was established by the Supreme Court and has been used for decades to evaluate various investment schemes, including cryptocurrencies. It provides a clear framework for regulators to determine whether a cryptocurrency should be subject to securities regulations.
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