[this_user]

Just because you claim something is a currency, doesn't make it one, especially if it doesn't even exhibit the properties of a currency.

But the question of what is a "security" has been clearly answered in 1946:

> For purposes of the Securities Act, an investment contract (undefined by the Act) means a contract, transaction, or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party, it being immaterial whether the shares in the enterprise are evidenced by formal certificates or by nominal interests in the physical assets employed in the enterprise.

A lot of these coins are attached to some such scheme by a 3rd party, therefore they should be considered securities. This may even apply to most NFTs.

Source: https://supreme.justia.com/cases/federal/us/328/293/

[sebzim4500]

A lot of people buy houses thinking they will increase in value. Good to know they've all been doing securities fraud.

[arcticbull]

You can google this stuff you know? Real estate does not fall under the securities umbrella. This is well established legal precedent, covered under Howey, the Securities Act, the Securities Exchange Act subsequent rulings.

Real estate fails the Howey test because there is no common enterprise.

https://www.compliancebuilding.com/2010/11/04/what-is-a-secu...

[sebzim4500]

Where's the common enterprise for BTC (or BCH, if you are one of those people who somehow thinks that BCH is a security but BTC isn't)?

[arcticbull]

It's covered here [1].

I believe the common enterprise exists no matter which coin, but with Bitcoin there was never an investment of money in its launch. Don't quote me on that though. I know the delta has to do with initial coin distribution.

[1] https://www.sec.gov/files/dlt-framework.pdf

[prottog]

If there was a startup called Homebase that was in the business of serving as an exchange where people could trade houses, the SEC might be interested ;-)

[sebzim4500]

Last time this was discussed here people were suggesting that BTC was not a security but BCH was, despite being basically the same thing, and certainly both being exchanged on Coinbase.

[jcranmer]

Real estate fails the "common enterprise" and "... derived from the efforts of others" prongs of the Howey test. If you decided to package real estate investment into something like a REIT, well, then you have a security. But if you're a homeowner buying a house (even a second or third house you intend to rent out), that's not a security.