# kaal:claim:4021599-019

**Claim.** Utility tokens are not investment contracts and not investments because they are meant for a good or service, and they are typically exempted from federal securities laws if they are properly set up.

**Type.** condition  **Support.** argued

**Holds when.**

- the utility token is properly structured at issuance
- United States federal securities laws

**Source quote.**

> Utility tokens are not investment contracts and are not investments because are meant for a good or service30 and they are typically exempted from federal securities laws if they are properly set up.31

**From.** Wulf A. Kaal, *Securities Versus Utility Tokens* (2022), III. General Characteristics of Utility Tokens, page 10

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

**Verify.** sha256 of source PDF `bb03790af46b3710e306121cfae25f850e3e7477e0f95313af42b9feeb6bc0c4` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202022%20-%20Securities%20Versus%20Utility%20Tokens.pdf

**Topics.** tokenomics, securities-law

**Keywords.** utility-token, investment-contract, securities-exemption, token-structuring

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