How Does the US Howey Test Relate to the "Financial Instrument" Definition in Other Jurisdictions? ⎊ Path

How Does the US Howey Test Relate to the “Financial Instrument” Definition in Other Jurisdictions?

The Howey Test is a US-specific legal framework for identifying an "investment contract" (a type of security). Other jurisdictions, particularly the EU with MiFID II and MiCA, use different definitions for "financial instrument" that are often more prescriptive.

While the underlying principle of regulating investments where profit relies on others' efforts is similar, the legal tests differ. The Howey Test's focus on the economic reality of the transaction is a core concept often mirrored in global regulatory approaches.

How Does the Howey Test Apply to Cryptocurrency Tokens?

What Is the Significance of the “Solely” from the Efforts of Others Clause in the Howey Test?

What Is the “Howey Test” and Its Relevance to Tokens?

What Is the “Howey Test” and How Is It Applied to Cryptocurrencies?

Does Trading a Token on a DEX That Is Not Regulated Venue Exempt It from MAR Principles?

Define the “Solely from the Efforts of Others” Prong of the Howey Test

How Does Decentralization of a Crypto Network Affect Its Classification under the Howey Test?

How Do Global Regulators Harmonize Their Approach to Market Manipulation in Crypto?

Glossar

Howey Test

Investment ⎊ Contract analysis hinges on demonstrating the presence of an investment of money in a common enterprise with an expectation of profits derived substantially from the efforts of others.