Blockchain advocacy group Coin Center continues to believes some cryptocurrencies look like securities by law, and should be regulated as such. Peter Van Valkenburgh, the organization’s director of research, published a new report Friday arguing that certain cryptocurrencies follow the oft-cited Howey Test and act as investment contracts. As such, he wrote, they should be treated as securities. The report updates a 2016 version, which laid out a possible framework for regulators in determining whether any given cryptocurrency should be a security according to the Howey Test. The framework examines three variables that Valkenburgh believes are important for determining whether a cryptocurrency is a security: “distribution, decentralization and functionality.” Specifically, he says, how a token is initially distributed, how decentralized its underlying network is and what powers or rights token holders have should determine whether it is a security. He wrote: “We find that larger, more decentralized cryptocurrencies —
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