Discover and read the best of Twitter Threads about #Howey

Most recents (6)


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. 🧪
🔒 The #Howey Test asks:

Does the investment involve putting money into a common enterprise with the expectation of profits primarily from the efforts of others?

If the answer is yes, it's likely considered a #security. 📝✅
Read 10 tweets
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.
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.
Read 23 tweets
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:
Amy Starr is likely one of the fact witnesses from the #SEC that #Ripple elected to depose in addition to William Hinman.

Her name was brought up in the Hinman deposition. See pic 👇

In the Consensus 2019 video Amy states “we have people that really understand the technology.”
Amy Starr states that at the #SEC “we developed an expertise” in blockchain technology and that at the #SEC “we participate internationally.”

Why is this all significant? One, #XRP was internationally recognized as a non-security!

Two, the #SEC was an expert and understood
Read 15 tweets
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.
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).
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.
Read 16 tweets
#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.
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
to be an investment contract. But it’s not just the #Howey case that has made it crystal clear that the token itself IS NOT a security.

#BTC, #ETH, #XRP, #Gold, #Soybeans, #copper, #coffee and any other product or commodity can be marketed, packaged, sold and distributed
Read 18 tweets
⚖️📚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
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)
3️⃣🤯Interaction between IP laws and #NFTs is COMPLICATED

By default ownership of #NFT = ownership of the token itself, NOT of the underlying work (or copyright/other IP rights in it)

That ownership remains with the original creator of the work

(3 of 6)
Read 6 tweets

Related hashtags

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!