VECTOR_ANALYSIS // LEGAL
Howey Test
NODE: HOWEY-TEST
VERIFICATION: PASSED
01_DEFINITION
Strict Definition
"A legal standard in the US used to determine whether a transaction qualifies as an 'Investment Contract' and is therefore subject to securities regulation."
Liability Check // Risk Analysis
The 'Unregistered Security' risk. If a token fails the Howey Test (Investment of money + Common enterprise + Expectation of profits + From the efforts of others), it can be labeled an unregistered security, leading to massive fines and delisting.
Knowledge Context // Related Terms
Auditor NotesVS-AN-2026
Strategy Domain
"Before launching or investing in a token, conduct a formal 'Howey Memo' with specialized counsel."
Operations Standard
"Avoid marketing materials that promise specific 'Profits from the team's work' to minimize regulatory exposure."
Legal & Compliance
"Strictly adhere to SEC guidance and case law (e.g., Ripple, Coinbase) when classifying assets for internal treasury."
DOCUMENT_ID: CW3-HOWEY-TEST-2026
SCHEMA_VER: AEO_3.2
LAST_AUDIT: 1/8/2026
HASH: WH0WCX
SCHEMA_VER: AEO_3.2
LAST_AUDIT: 1/8/2026
HASH: WH0WCX