Search Results for: howey

Howey Test – Framework for “Investment Contract” Analysis of Digital Assets

To show the markets that the Securities and Exchange Commission is not just about slapping around wrong-doers, but also trying to help people navigate the securities laws, the SEC’s FinHub published a framework for analyzing whether a digital asset is a security. The framework is not intended to be an exhaustive overview of the law; rather, … Continue reading “Howey Test – Framework for “Investment Contract” Analysis of Digital Assets”

HoweyCoins – The ICO I Have Been Waiting For

Initial coin offerings have been a new wave of financing.. and scams. One offering that you should look at for some lessons about coin offerings is the soon to be released Howey Coin. HoweyCoins are the cryptocurrency for the travel industry. According to the white paper, HoweyCoins partner agreements lock in an average initial discount … Continue reading “HoweyCoins – The ICO I Have Been Waiting For”

Is a Cow a Security?

If the investment is a “security”, you have to comply with the Securities and Exchange Commission regulations. The seminal case is Howey, where a sponsor was selling interests in an orange grove in Florida. The sponsor was not just selling the small land parcels with orange trees on them, but also his management, harvesting and … Continue reading “Is a Cow a Security?”

The One with the Stoner Cats

With the onset of the crypto winter, the Securities and Exchange Commission is continuing to bring cases against crypto companies. The latest is against a funding model for animated series: Stoner Cats. The producers wanted to try finding a crypto method to fund the production. It started off as Kickstarter mixed with Non-Fungible Tokens. The … Continue reading “The One with the Stoner Cats”

Are Syndicated Loans Securities?

Notes are securities and loans are not securities. Simple enough. Except, our financial system doesn’t operate in such a black and white manner. Syndicated loans kind of fall in the middle. Your traditional loan is a single lender who holds and controls the debt. Notes and bonds get issued into a more fungible format to … Continue reading “Are Syndicated Loans Securities?”

Ripple is Sometimes a Security (?)

The big challenge with crypto is how it fits into regulatory schemes that were drafted almost a century a go. Add in the politically driven split between the regulation of commodities by the CFTC and the regulation of securities by the SEC and you get a mess. Slap in the variable structures used by crypto … Continue reading “Ripple is Sometimes a Security (?)”

Can a Supercomputer Be a Security?

Accept at face value that Profit Connect is not a scam. That is a stretch given the purported high returns, coupled with a money back guarantee. • 15% to 20% Fixed APR• High-Net-Worth 30% APR• APR is Locked-In• 100% Money Back Guarantee No such thing as high returns with no risk. Of course, if the … Continue reading “Can a Supercomputer Be a Security?”

The One with the Missing Solar Generators

Jeff and Paulette Carpoff had what sounds like a great idea to me: mobile solar generator units. These are solar generators that would be mounted on trailers that could provide emergency power to cellphone towers and lighting at sporting events. Plus there were generous federal tax credits due to the solar nature of the generators. … Continue reading “The One with the Missing Solar Generators”

When Is a Note Not A Security?

I had to scratch my head for a moment when reading the case against Jan Atlas. The SEC accused the lawyer of issuing legal opinions in which he falsified or omitted important facts in connection with an unregistered, fraudulent offering. “At the time he drafted the May 17 opinion letter, Atlas knew that certain facts … Continue reading “When Is a Note Not A Security?”

Can Cattle Be a Security?

The Security and Exchange Commission filed a complaint alleges that Mark Ray, a Denver resident, was the mastermind of a scheme for the purported purchase and immediate resale of large numbers of cattle. I don’t recall cattle showing up in the definition of a “security.” The first part of the scheme is labeled a Ponzi … Continue reading “Can Cattle Be a Security?”