Is “The Howey Take a look at” outdated-customary? Modernizing laws for the digital age

Is “The Howey Test” outdated? Modernizing rules for the digital age

The depart and attain of cryptocurrency adoption in fresh years indicators the dire want for up-to-the-minute rules that concurrently safeguards merchants and permits innovation to flourish. Because it stands, most crypto tokens tumble internal a regulatory gray salvage 22 situation as they don’t match for the length of the confines of the feeble financial machine — so why would per chance well nonetheless they tumble prey to inapplicable, outdated principles?

Currently, the SEC applies “The Howey Test,” prognosis based mostly solely mostly on a 1946 U.S. Supreme Court ruling, to roar apart between securities and non-securities. The SEC asserts that securities are an “investment of cash in a frequent project with an cheap expectation of profits to be derived from the efforts of others.”

Completely decentralized vs. solely centralized

Additional categories

The answer: Transparent regulatory framework

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