What Is the Legal Risk If a “Utility Token” Is Never Actually Used for Its Stated Utility?

If a "utility token" is never actually used for its stated utility, the legal risk is high that it will be retroactively classified as an unregistered security. The SEC's primary focus is on the "economic reality" of the transaction.

If the token was purchased with an expectation of profit and lacks any real-world use, it strongly suggests the purchase was a passive investment, satisfying the Howey Test. This failure of utility undermines the issuer's defense that the token is merely a consumable product, leading to potential enforcement action.