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Experts continue to debate whether crypto should be categorized as a security rather than a commodity, particularly in the context of decentralized finance (DeFi), token lending, token airdrops, staking programs, and so on.
US regulators and courts still use the Howey Test as the legal basis for assessing whether a crypto transaction qualifies as a security. This depends solely on the characteristics of the crypto transaction, not on the blockchain technology or the type of crypto. Therefore, in practice, the boundary between securities and non-securities depends on the economic context and focuses more on users participating in an investment contract based on reasonable expectations.
US regulators and courts still use the Howey Test as the legal basis for assessing whether a crypto transaction qualifies as a security. This depends solely on the characteristics of the crypto transaction, not on the blockchain technology or the type of crypto. Therefore, in practice, the boundary between securities and non-securities depends on the economic context and focuses more on users participating in an investment contract based on reasonable expectations.