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Securities are well defined, see https://en.wikipedia.org/wiki/Securities_Exchange_Act_of_1934 https://en.wikipedia.org/wiki/Securities_Exchange_Act_of_193...
by hackcasual 9y ago
Securities are well defined, see https://en.wikipedia.org/wiki/Securities_Exchange_Act_of_1934 https://en.wikipedia.org/wiki/Securities_Exchange_Act_of_193...
Really anything that gains value soley due to being promoted would be considered a security SEC v. WJ Howey Co:
> [a]n investment contract for purposes of the Securities Act means a contract, transaction or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party.
- flowctrl 9y agoThe second half is important too: that the expected profits are from the efforts of the promoter. In other words if a company is doing work of some kind, and they are selling a token on the basis that it will go up in value due to the work that they are doing, then it is a security.