09/09/2026
Crypto classification often depends on how a digital asset was offered and sold, not just what it was called.
Courts use the Howey test to evaluate whether a crypto offering may qualify as an investment contract under federal securities law. The key question is often whether purchasers were led to expect profits from the efforts of others.
This matters because a token, coin, or digital product may still raise securities law issues depending on the structure of the offering and the promises made to investors.
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