What Is the Howey Test and Why Is It Important for Crypto Assets? ▴ Learn

What Is the Howey Test and Why Is It Important for Crypto Assets?

The Howey Test is a US Supreme Court framework used to determine if a transaction qualifies as an 'investment contract' and is therefore subject to securities regulation. It asks if there is an investment of money in a common enterprise with an expectation of profit derived solely from the efforts of others.

If a crypto asset meets this test, it is classified as a security token.

What Is the Howey Test and Why Is It Crucial for Crypto Regulation?

What Is the “Howey Test” and How Does It Relate to Token Classification?

How Does the “Howey Test” Determine If a Crypto Derivative Falls under SEC or CFTC Jurisdiction?

What Is the Howey Test and How Is It Applied to Determine If a Token Is a Security?