Episode 4: But Is It A Security?

Tokens of Wisdom

Many of the laws that we’ve discussed on this show hinge on whether the assets you’re investing in are securities. So, we’ve decided to clearly define securities for you, while assessing if it’s a good idea to bet your business on additional assets not being securities. We discuss which assets can be securities, why Bitcoin is not a security as well as the status of other digital currencies, the Howey test and what an investment contract is, and why the SEC is not out to be your friend.

Key Points From This Episode:

• Today we will be defining what securities are and if it’s wise to bet on non-securities.
• The types of assets that can be securities; Bitcoin is not one of them.
• How digital assets can only be securities if it is an investment contract.
• What an investment contract is: the Howey test.
• The semantics of securities versus tokens.
• Why the SEC will rarely give you the answer you’re looking for.
• How investing in non-securities could land you in big trouble.

Disclaimer:

This show is for informational purposes only. Nothing presented here constitutes legal advice. Tokens of Wisdom is produced by Dave Rothschild, partner at Cole-Frieman & Mallon LLP headquartered in San Francisco, California. For more information, visit https://colefrieman.com/

Links Mentioned in Today’s Episode:

The Howey Test on Investopedia - https://www.investopedia.com/terms/h/howey-test.asp

SEC - https://www.sec.gov/

Dave Rothschild - https://www.linkedin.com/in/davidcrothschild/

Cole-Frieman & Mallon LLP - https://colefrieman.com/

Music by Joe Ginsberg - https://www.instagram.com/thejoeginsberg

For any questions or comments, email: [e-mail]