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What Is the Howey Test and Why Is It Crucial for Evaluating an ICO’s Regulatory Risk?

Howey Test determines if a token is a security; failure to pass means high regulatory risk from the SEC.
Greeks.Live17.11.25

What Is the Howey Test and Why Is It Crucial for Evaluating an ICO’s Regulatory Risk?

The Howey Test is a US Supreme Court framework used to determine if a transaction qualifies as an 'investment contract' and thus a 'security' subject to regulation. If an ICO token meets the four prongs of the test, it faces significant regulatory risk if not registered with the SEC.

Name a Notable SEC Enforcement Action Based on the Howey Test for an ICO
What Is the “Investment Contract” Test Used by the SEC?
How Does Decentralization of a Crypto Network Affect Its Classification under the Howey Test?
What Are the Four Prongs of the Howey Test?

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