Howeytest

🛡️ The Great Divide: Howey Test vs. Memecoins
SEC Confirms They’re Collectibles, Not Securities

🇻🇮The SEC shook the crypto world by declaring memecoins NOT financial securities, freeing them from registration. This pits the decades-old Howey Test against the unpredictable memecoin craze — exposing a regulatory fault line that could reshape crypto investing forever.

📇 What is the Howey Test?
A 1946 Supreme Court rule defining an investment contract — the core of securities law. To qualify as a security, an asset must meet all 4 pillars:

1️⃣ Investment of money — Capital put in by investors

2️⃣ Common enterprise — Funds pooled or linked together

3️⃣ Expectation of profits — Investors seek returns

4️⃣ Efforts of others — Profits depend on a central team’s work

🔰How the Howey Test Applies to Crypto
For cryptocurrencies and ICOs, meeting all 4 means SEC regulations kick in:

✅ Registration with SEC

✅ Investor disclosures

✅ Legal consequences for violations

🎭Memecoins vs Howey: Why the Divide?
🔻Memecoins like Dogecoin & Shiba Inu fall outside Howey’s net because:

🚫 No common enterprise — No pooled funds under one business

🚫 No centralized management — Driven by decentralized communities

🚫 Profit expectation comes from hype — Not developer efforts

🚫 Minimal utility — More speculation than investment contract

🚨 Why SEC’s Decision Matters:-
⛔ Loosens regulations on meme tokens
⛔ Cuts compliance for decentralized projects
⛔ Shifts risk to investors — less legal protection

⚠️ Investor Risks in the Memecoin Era:-
🛑 Scam & pump-and-dump schemes
🛑 Volatility fueled by hype, not fundamentals
🛑 Lack of transparency and accountability

🔖Final Word
The Howey Test guides securities law, but memecoins challenge its reach. As the SEC redraws boundaries, investors must stay sharp:

📜In the memecoin era, hype rules—but risk reigns.
#HoweyTest #Memecoins
#CryptoRegulation #SEC #InvestorProtection
$DOGE $PEPE $SHIB

Top Tokens By Smart Money Inflow

🆕 SORA - Sora Labs integrates AI into the Solana ecosystem, providing tools like the Zen framework for intelligent chat systems, Hana for social media interactions, and toolkits for AI-powered app development. Focused on accessibility and innovation through open-source collaboration.
Mcap: $12.86M.

🆕 HOWEYCOINS - A cryptocurrency created after the name was used by SEC as an example of investment fraud in an educational campaign.
Mcap: $2.89M.

🆕 DWAIN - An AI agent powered by OnlyFainsAI, specializing in gaming, sports betting, and AI-driven commentary. Winner of the HoloworldAI Special Prize at the Solana Hackathon.
Mcap: $7.07M.

#BTCBackto100K #CPIPlunge2025 #SORA #Howeytest #CryptoAMA

#SECCryptoRoundtable
On March 21, 2025, the U.S. Securities and Exchange Commission #SEC held its first roundtable
focused on cryptocurrencies.

✳️Topic: The roundtable was part of the Spring Sprint series and was titled "How We Got Here and How We Get Out: Defining Security Status".

✳️Purpose: The discussion focused on legal issues related to the classification of crypto assets under federal securities laws. In particular, the complexities of applying #Howeytest to crypto assets were discussed.

✳️Participants in the roundtable included representatives from the SEC, lawyers, market participants, academics, and other stakeholders.