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.