Educational Byte: The Howey Test’s Role in Crypto and Securities Rules

This story was originally published on HackerNoon at: https://hackernoon.com/educational-byte-the-howey-tests-role-in-crypto-and-securities-rules. Strange but true that a citrus-grove dispute now influences crypto and securities rules. Let's see what the Howey Test is and how to face it. Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #crypto-regulation, #howey-test, #crypto-security, #sec-crypto-regulation, #the-dao-incident, #the-dao-report, #obyte, #good-company, and more. This story was written by: @obyte. Learn more about this writer by checking @obyte's about page, and for more stories, please visit hackernoon.com. The Howey Test is a 1946 U.S. Supreme Court decision that defines investment contracts as securities. When people contribute money to a shared project and expect profits from someone else’s effort, the setup should be treated as a security. In July 2017, the US Securities and Exchange Commission said the DAO tokens were securities.