>1. USDT is not a DAR (Digital Asset Receipt) like other so called "stablecoins" (i.e. it's not backed 1:1 by physical USD). Instead it's a pooled investment fu

>1. USDT is not a DAR (Digital Asset Receipt) like other so called "stablecoins" (i.e. it's not backed 1:1 by physical USD). Instead it's a pooled investment fund claiming to keep NAV (Net Asset Value) around 1 USD. But if you buy 1 USDT you do not own a share of that fund. That's the Tether Holdings fund that may or may not be used to redeem your USDT. There's no indication that your 1USDT will be redeemed for anything less than 1USD even if the value of Tether Holdings's assets sinks below it's liabilities. >2. it behaves more like an MMF (Money Market Fund) How does USDT behave like an MMF? MMFs distribute excess earnings to shareholders. In the case of USDT you aren't a shareholder and don't get anything at all. Your USDT token might be redeemed for 1 USD but certainly not more. >Each of the points above can be interpreted as "With the expectation of profit" clause in the Howey test. The expectation of profit needs to be reasonable. There's no chance you'll make a profit with tether, even in the best case scenario it's guaranteed to lose value to inflation.