Regulation & Institutions

Howey Test

The US legal test, from a 1946 Supreme Court case, for what counts as an investment contract, and therefore a security: money invested in a common enterprise with an expectation of profit from the efforts of others. It sits at the center of the debate over which tokens are securities.

General education, not investment, legal or tax advice. Markets and regulation change quickly: where a definition depends on current law or on a recent event, check the latest coverage before relying on it.