Hacker News new | ask | show | jobs
by doopy1 1417 days ago
"A reasonable expectation of profit" seems like it would exclude all stable coins.
2 comments

That's true. NFTs seem also failed the test because the speculated price increase is not "derived from the efforts of others". I think that is one of the reasons SEC considers Bitcoin to be a commodity (which probably falls in the jurisdiction of CFTC) but not a security.
You're not quite right about NFTs. For example the "Lucky Block NFTs" entitle you to a percentage of a rewards pool. Or Vee Friends - Gary Vaynerchuk's NFTs - he's been very explicit that he will work to do things to increase the value of the NFTs. In fact, Gary Vee's pitch seems to be almost tailor made to meet the Howey test. I'm sure that A16Z were fastidious in their due diligence when they invested in it though.
I see. Thanks for the correction!
I think this depends largely on the collection and how it's promoted, but just selling an art NFT imo seems like it would fail the test.
"Derived from the efforts of others" also excludes most crypto, since by definition they produce nothing.