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Crypto Meets The Howey Test
- The SEC is aggressively suing major crypto exchanges alleging unregistered securities activity.
- Determining if cryptocurrencies are securities hinges on the 1946 Howey test for investment contracts.
Howey Test Is Too Broad
- Cryptocurrencies meet the Howey test but this test could apply to almost anything involving investment.
- Not everything that meets it should be regulated as a security by the SEC.
Newer Cryptos Look Like IPOs
- New cryptocurrencies resemble IPOs raising capital for development funding.
- SEC targets these newer tokens, not major established ones like Bitcoin or Ethereum.