Crypto, Securities, Howey Test, white-collar defense Constantine Economides Crypto, Securities, Howey Test, white-collar defense Constantine Economides

Security Today, Non-Security Tomorrow: Have Recent Crypto Decisions Under the Howey Test Created Unworkable Standards?

For years, courts viewed the “Howey” test as clear guidance as to whether a particular asset or investment was a security. Now, recent inconsistent decisions, particularly in the crypto space, have questioned that clear guidance. The effect is a rekindling the debate as to whether the term “investment contract” is void for vagueness because it fails to give people and businesses a reasonable answer as to what is or is not a security.

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Crypto Riley Hiatt Crypto Riley Hiatt

Crypto Terminology Cheat Sheet

Decentralized Finance (DeFi): The overall ecosystem of crypto-currency and blockchain. DeFi is a response to issues with centralized financial exchanges (banks, brokerages, etc.) and uses the new technologies of crypto and blockchain to remove third party intermediaries. It allows for direct peer-to-peer financial transactions.  

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Crypto, Securities, Howey Test, Constitution Constantine Economides Crypto, Securities, Howey Test, Constitution Constantine Economides

Is It Time to Re-Assess Whether the Term “Investment Contract” in the Securities Act and Exchange Act is Unconstitutionally Vague?

For years, courts viewed the “Howey” test as clear guidance as to whether a particular asset or investment was a security. Now, recent inconsistent decisions, particularly in the crypto space, have questioned that clear guidance. The effect is a rekindling the debate as to whether the term “investment contract” is void for vagueness because it fails to give people and businesses a reasonable answer as to what is or is not a security.

Read More