Is “The Howey Test” outdated-long-established? Modernizing regulations for the digital age

Is “The Howey Test” outdated?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

The rate and reach of cryptocurrency adoption in recent years alerts the dire need for up-to-the-minute guidelines that simultaneously safeguards traders and enables innovation to flourish. Because it stands, most crypto tokens descend interior a regulatory gray divulge as they don’t match interior the confines of the extinct monetary machine — so why must always aloof they descend prey to inapplicable, outdated ideas?

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

Totally decentralized vs. fully centralized

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The resolution: Clear regulatory framework

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