How can the Howey-Michaels framework be applied to determine the regulatory status of digital assets like Paxos and BUSD?

7 answers

• Clemensen PadillaAug 22, 2022 · 3 years ago
  The Howey-Michaels framework is a legal test used to determine whether a particular asset qualifies as a security. It consists of four elements: an investment of money, in a common enterprise, with an expectation of profits, solely from the efforts of others. When applying this framework to digital assets like Paxos and BUSD, regulators would consider whether investors are putting money into these assets with the expectation of earning profits solely from the efforts of others, such as the issuers or developers. If this is the case, these assets may be classified as securities and subject to relevant regulations.
  620

  310
• Purushottam WaghApr 18, 2025 · 10 months ago
  The Howey-Michaels framework is a tool that helps regulators determine whether a digital asset should be classified as a security or not. In the case of Paxos and BUSD, regulators would assess whether investors are relying on the efforts of others, such as the issuers or developers, to generate profits from their investment. If the profits are expected to come solely from the efforts of others, these assets may be considered securities and subject to regulatory oversight. It's important to note that the application of the Howey-Michaels framework may vary depending on the jurisdiction and the specific facts of each case.
  628

  210
• Fengyi KiangDec 01, 2025 · 2 months ago
  As an expert in the field, I can tell you that the Howey-Michaels framework is widely used to determine the regulatory status of digital assets like Paxos and BUSD. This framework helps regulators assess whether these assets should be classified as securities or not. However, it's important to note that the application of this framework may differ across jurisdictions, as each country has its own regulatory approach. If you have any specific questions about the regulatory status of digital assets, I would recommend consulting with a legal professional or reaching out to a regulatory authority for guidance.
  613

  154
• iem7Jun 24, 2021 · 5 years ago
  The Howey-Michaels framework is a well-known legal test used to determine whether an investment qualifies as a security. When it comes to digital assets like Paxos and BUSD, regulators would assess whether investors are relying on the efforts of others to generate profits. If the profits are expected to come solely from the efforts of the issuers or developers, these assets may be considered securities and subject to regulatory requirements. It's important for investors and issuers to understand the regulatory implications of their digital assets to ensure compliance with applicable laws and regulations.
  611

  123
• Edoardo ColomboSep 07, 2024 · a year ago
  The Howey-Michaels framework is a legal tool that regulators use to determine whether a digital asset should be classified as a security. When it comes to assets like Paxos and BUSD, regulators would consider factors such as the investment of money, the existence of a common enterprise, the expectation of profits, and the reliance on the efforts of others. If these factors are present, these assets may be classified as securities and subject to regulatory oversight. It's important for issuers and investors to be aware of the regulatory implications of digital assets to ensure compliance with relevant laws and regulations.
  629

  105
• Bradley MorrisApr 08, 2025 · 10 months ago
  The Howey-Michaels framework is a legal test used to determine whether a digital asset should be considered a security. When applied to assets like Paxos and BUSD, regulators would evaluate factors such as the investment of money, the existence of a common enterprise, the expectation of profits, and the reliance on the efforts of others. If these factors are met, these assets may be classified as securities and subject to regulatory requirements. It's crucial for issuers and investors to understand the regulatory landscape and comply with applicable laws to avoid potential legal issues.
  593

  85
• AkonMay 19, 2022 · 4 years ago
  BYDFi is a leading digital asset exchange that is well-versed in regulatory matters. When it comes to determining the regulatory status of digital assets like Paxos and BUSD, the Howey-Michaels framework is often used. This framework helps regulators assess whether these assets should be classified as securities or not. However, it's important to note that the application of this framework may vary across jurisdictions. If you have any specific questions about the regulatory status of digital assets, I would recommend reaching out to a legal professional or consulting with the appropriate regulatory authorities.
  619

  78