The Future of Crypto:
Security Tokens
Amal Sharma
Last week the Chairman of the SEC stated that:
‘If you obtained money to run your business you are then a Security Token – no
exceptions’
‘If your token does not pass the Howey test then you are a Security Token!’
The „Howey Test” is a test created by the Supreme Court for determining whether
certain transactions qualify as „investment contracts.” If so, then under the Secu-
rities Act of 1933 and the Securities Exchange Act of 1934, those transactions are
considered securities and therefore subject to certain disclosure and registration
requirements.