kaal:claim:4021599-027
The Howey test operates as the practical sorting device between the two categories: a token that passes the Howey test is deemed a security token, while a token that does not qualify under Howey is often classified as a utility token.
Source quote, verbatim
Utility tokens can also be distinguished from securities tokens through the Howey test. While a token that passes the Howey test is deemed a security token, a token that does not qualify under the Howey test is often classified as a utility token.45 The SEC provides
From
Cite as
Holds when
Classification
mechanismsupport: arguedsecurities-lawsystemic-risktokenomics
Verify