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Is “The Howey Test” outdated? Modernizing laws for the digital age By Cointelegraph

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Is “The Howey Test” Outdated? Modernizing Regulations For The Digital Age

The fee and attain of cryptocurrency adoption in recent times indicators the dire want for contemporary laws that concurrently safeguards traders and permits innovation to flourish. Because it stands, most crypto tokens fall inside a regulatory grey space as they don’t match throughout the confines of the standard monetary system — so why ought to they fall prey to inapplicable, outdated guidelines?

Presently, the SEC applies “The Howey Test,” a authorized evaluation primarily based on a 1946 U.S. Supreme Courtroom ruling, to distinguish between securities and non-securities. The SEC asserts that securities are an “investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.”

Totally decentralized vs. totally centralized

Extra classes

The resolution: Clear regulatory framework

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