The SEC explains how it's viewing a crypto security: State of Crypto
The SEC has clarified its stance on how it views cryptocurrencies as securities, emphasizing that the determination depends on the specific facts and circumstances surrounding each asset. The agency highlighted the importance of the Howey Test, which assesses whether an investment contract exists based on the expectation of profits from the efforts of others. Additionally, the SEC reiterated that many tokens may qualify as securities, particularly those that are sold in initial coin offerings (ICOs). This guidance aims to provide more clarity for crypto projects and investors navigating regulatory compliance.
Read the full article: CoinDesk