kaal:claim:4021599-014

For digital assets the decisive element of the Howey analysis is whether the purchaser of the token has a reasonable expectation of profits derived from the efforts of others, which the SEC divides into reliance on the efforts of others and reasonable expectation of profits.

Source quote, verbatim

purchaser of such a token has a reasonable expectation of profits derived from others.

From

Wulf A. Kaal, Securities Versus Utility Tokens (2022), II. General Characteristics of Securities Tokens, p. 8
https://ssrn.com/abstract=4021599 · source PDF

Cite as

Wulf A. Kaal, Securities Versus Utility Tokens (2022). SSRN: https://ssrn.com/abstract=4021599

Holds when

SEC framework for investment contract analysis of digital assets

Classification

conditionsupport: evidencedsecurities-law

Related claims

generalizes kaal:claim:5583610-020 Non-transferability is what defeats the expectation of profits prong: because LER vouchers cannot be listed, t...

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