What Are Security Tokens?
A crypto token that passes the Howey test is deemed a security token. These usually derive their value from an external, tradable asset. Because the tokens are deemed a security, they are subject to federal securities laws and regulations. If the ICO doesn’t follow the regulations, it could be subject to penalties.
A crypto token that passes the Howey test is deemed a security token. These usually derive their value from an external, tradable asset. Because the tokens are deemed a security, they are subject to federal securities laws and regulations. If the ICO doesn’t follow the regulations, it could be subject to penalties.