US attorney says Howey is most misapplied legal test on Cryptocurrencies

John Deaton shared his opinion on the “Howey Test” & investment contract” in-applicability on Cryptocurrencies. 

John Deaton Managing Partner of Deaton Law Firm is the founder of CryptoLaw. Cryptolaw website is a fully crypto-focused legal team that maintains awareness about new legal policies on the crypto sector under the jurisdiction of the United States. 

On 2 April 2023, Deaton took to Twitter to share his opinion on the misuse of the Howey Test on the cryptocurrencies like Bitcoin, Ethereum, and Ripple tokens by the United States Securities and Exchange Commission (SEC). 

US Crypto attorney noted that crypto or say software code is not listed under the SEC act of 1933, so Howey Test isn’t applicable to cryptocurrencies.

Further, Deaton said that crypto assets like Gram token, XRP, ETH are not security despite Ethereum’s ICO project constituting an unregistered securities offering and the Ripple team sold XRP tokens on many occasions.

Crypto attorney noted that in the history of the US, the sale of any asset in the secondary market was never considered a security. 

According to Deaton distribution of every crypto asset in the crypto sector via ICO or direct launch in a secondary marketplace was unregistered security offerings, including Bitcoin. 

Deaton suggested crypto industry not allow Gary Gensler or the SEC agency to consider any crypto token security themselves.

“The industry can’t allow Gensler and the SEC snd #BTC    Maxis to keep pushing an unconstitutional shortcut by calling the tokens themselves as securities,” Deaton said.

Read also: Bitcoin can reduce 97% remittance fees: Research

• SEO Powered Content & PR Distribution. Get Amplified Today.
• Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
• Source: https://bitcoinik.com/us-attorney-says-howey-is-most-misapplied-legal-test-on-cryptocurrencies/