What are the key criteria of the Howey securities test that apply to digital currencies?

3 answers

• Dawid HallmannAug 20, 2023 · 2 years ago
  The Howey test is a legal test used in the United States to determine whether a transaction qualifies as an investment contract, which is considered a security. When it comes to digital currencies, the key criteria of the Howey test include: 1) an investment of money, 2) in a common enterprise, 3) with an expectation of profits, 4) solely from the efforts of others. This means that if a digital currency meets these criteria, it may be classified as a security and subject to relevant securities regulations.
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• Marianito TaparOct 21, 2024 · a year ago
  The Howey test is a set of criteria established by the U.S. Supreme Court in the 1946 case SEC v. W.J. Howey Co. to determine whether a transaction involves an investment contract. In the context of digital currencies, the key criteria of the Howey test are: 1) an investment of money, 2) in a common enterprise, 3) with an expectation of profits, 4) solely from the efforts of others. If a digital currency meets these criteria, it may be considered a security and subject to securities laws.
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• Matthews AvilaSep 22, 2025 · 3 months ago
  According to the Howey test, digital currencies may be considered securities if they meet the following criteria: 1) an investment of money, 2) in a common enterprise, 3) with an expectation of profits, 4) solely from the efforts of others. This means that if investors put money into a digital currency with the expectation of making a profit solely from the efforts of others, it may be classified as a security. However, it's important to note that not all digital currencies meet these criteria and may be exempt from securities regulations.
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