# Securities classification

`kaal:entity:securities-classification`

**Status.** derived

This node is assembled mechanically from the 4 claims that carry the concept tag `securities-classification`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

4 claims across 2 works, 2022 to 2025.

**2022**

- [4021599-022](https://wulfkaal.github.io/claims/4021599-022) [condition/evidenced] -- Under SEC guidance a token sold for use or consumption by purchasers may fall outside classification as a security, and the SEC lists characteristics whose stronger presence makes a token less likely to be considered a security.
  > According to SEC guidance, if a token is sold for use or consumption by purchasers it may not be classified as a security for regulatory purposes. The SEC provided a list of characteristics where, the stronger their presence,35 the less likely a token is to be considered a security.
  Wulf A. Kaal, Securities Versus Utility Tokens (2022). SSRN: https://ssrn.com/abstract=4021599

**2025**

- [5454054-022](https://wulfkaal.github.io/claims/5454054-022) [condition/argued] -- The absence of fiat par-redemption combined with limited acceptance inside merchant ecosystems makes LER rewards closed-loop utilities, which is what removes their classification as electronic money tokens or securities.
  > Third, the absence of fiat par-redemption and limited acceptance within merchant ecosystems positions LER voucher loyalty rewards as closed-loop utilities. This removes their classification as electronic money tokens (EMTs) or securities, which, in turn, simplifys compliance.
  Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054
- [5454054-031](https://wulfkaal.github.io/claims/5454054-031) [design/argued] -- LER must maintain a visible separation between equity tenure verification and reward attribution, so that vouchers operate as loyalty entitlements and do not represent equities, dividends, or profit shares.
  > A key legal compliance strategy for LER is maintaining an obvious separation between equity tenure verification and reward attribution. This separation ensures voucher loyalty rewards function as loyalty entitlements without representing equities, dividends, or profit shares.
  Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054
- [5454054-032](https://wulfkaal.github.io/claims/5454054-032) [condition/argued] -- Because Landreth holds that instruments carrying equity attributes such as dividends or voting rights are securities, LER rewards cannot include any such features and must function as independent loyalty perks.
  > This is reinforced by SEC v. Landreth Timber Co. (1985), where the court held that stock sales are securities if they carry equity attributes like dividends or voting rights. Therefore, LER rewards cannot include such features.
  Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/securities-classification.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.