How Does the Decentralization of a Network Impact the Howey Test’s Application?

A high degree of network decentralization significantly weakens the "efforts of others" prong of the Howey Test. If the network is sufficiently decentralized ▴ meaning no central party is responsible for its ongoing success ▴ the token is less likely to be classified as a security.

The SEC has indicated that assets like Bitcoin and Ethereum (post-merge) are not securities due to their decentralization.