Discover and read the best of Twitter Threads about #Howey
Most recents (6)
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A beginner's guide to securities in the world of #crypto! 🚀
🔒 What is a #security?
In simple terms, a security is a type of financial asset or investment instrument.
It represents something of value that you can trade, like stocks or bonds. 📊💰
A beginner's guide to securities in the world of #crypto! 🚀
🔒 What is a #security?
In simple terms, a security is a type of financial asset or investment instrument.
It represents something of value that you can trade, like stocks or bonds. 📊💰
🔒 How is a #crypto determined to be a security?
Well, it depends on its characteristics and how it's offered to investors.
In the US, the Securities and Exchange Commission (SEC) uses the "Howey Test" to evaluate this. 🧪
Well, it depends on its characteristics and how it's offered to investors.
In the US, the Securities and Exchange Commission (SEC) uses the "Howey Test" to evaluate this. 🧪
Fraud is illegal by statute and common law. The DOJ and state ag’s can pursue criminal and civil fraud cases. Private citizens have a right of action. The SEC was not created to police fraud in general. It exists to regulate securities only. #ripple #libry #howey
2 Let’s say we were starting an açaí farm, Hi Açaí.
We also set up a global açaí wholesale açaí marketplace with its own ERC20 token — the Juice.
We also set up a global açaí wholesale açaí marketplace with its own ERC20 token — the Juice.
3 We also set up an NFT. People can buy the NFT and become part of the Açaí community. There is a DAO associated with the NFT that creates some rules for the Açaí market, develops an açaí cookbook, and produces an Açaí newsletter.
This is significant evidence in @SECGov 🆚 @Ripple & and even more significant evidence in #XRPHolders 🆚 @SECGov.
@CRYPTOcounselo2 does a great job summarizing the relevant statements and admissions contained in the video shared. Read the thread.
Some additional thoughts:
@CRYPTOcounselo2 does a great job summarizing the relevant statements and admissions contained in the video shared. Read the thread.
Some additional thoughts:
A @SECGov 🆚 @Ripple 🧵
For the first time ever in a non-ICO case, the @SECGov is asserting that the digital asset itself - #XRP - is a security.
That absurd argument not only violates common sense but it’s in direct contradiction of over 70 years of case law and precedent.
For the first time ever in a non-ICO case, the @SECGov is asserting that the digital asset itself - #XRP - is a security.
That absurd argument not only violates common sense but it’s in direct contradiction of over 70 years of case law and precedent.
In the #Howey case in 1946, there were two contracts in play between the investors and the W.J. Howey Co:
(1) a purchase and sale contract for the Orange 🍊 Groves;
(2) the investors signed a service contract hiring Howey to handle everything (from planting thru selling).
(1) a purchase and sale contract for the Orange 🍊 Groves;
(2) the investors signed a service contract hiring Howey to handle everything (from planting thru selling).
The Supreme Court found that the entire “scheme” taken together constituted a securities offering.
The Supreme Court NEVER said or implied that the oranges 🍊 were securities.
73 years later in 2019, the SDNY handed down the #Telegram case.
Telegram was a typical ICO case.
The Supreme Court NEVER said or implied that the oranges 🍊 were securities.
73 years later in 2019, the SDNY handed down the #Telegram case.
Telegram was a typical ICO case.
#XRPHolders 🆚 @SEC_News Thread:
@HesterPeirce was interviewed by @ThinkingCrypto1 and said that she was trying to get people at the @SEC_News to stop thinking about the token as a security but instead on how the token was being packaged and sold.
@HesterPeirce was interviewed by @ThinkingCrypto1 and said that she was trying to get people at the @SEC_News to stop thinking about the token as a security but instead on how the token was being packaged and sold.
I tweeted out, in disbelief, saying “that’s only been the law for 75 years.”
The Supreme Court in #Howey didn’t conclude that the oranges 🍊 were Securities, but it was the “scheme” and the totality of circumstances surrounding the transactions between the parties that was held
The Supreme Court in #Howey didn’t conclude that the oranges 🍊 were Securities, but it was the “scheme” and the totality of circumstances surrounding the transactions between the parties that was held
⚖️📚Some #legal thoughts on #NFTs 👇
1️⃣ Generally NFTs will NOT constitute securities (in US or UK)
🇺🇸Not ‘investment contracts’ (under #Howey test)
🇬🇧Not security tokens or e-money tokens, and so are ‘unregulated tokens’
(1 of 6) @OVioHQ @jamie247
1️⃣ Generally NFTs will NOT constitute securities (in US or UK)
🇺🇸Not ‘investment contracts’ (under #Howey test)
🇬🇧Not security tokens or e-money tokens, and so are ‘unregulated tokens’
(1 of 6) @OVioHQ @jamie247
2️⃣🚨#NFTs CAN be securities in certain circumstances
For example:
* fractionalised NFTs embodying rights to royalties; or
* NFTs sold with promise of future liquidity & continued services from issuer
Just calling something an NFT doesn’t change its underlying nature
(2 of 6)
For example:
* fractionalised NFTs embodying rights to royalties; or
* NFTs sold with promise of future liquidity & continued services from issuer
Just calling something an NFT doesn’t change its underlying nature
(2 of 6)
