According to @EleanorTerrett, Paul Atkins stated that a token is not a security merely because it was once part of an investment contract, echoing the citrus grove example at the core of the Howey standard, source: Eleanor Terrett on X, Nov 12, 2025; source: SEC v. W.J. Howey Co., 328 U.S. 293, 1946. This reinforces that U.S. securities analysis turns on the specifics of the offer and sale rather than the intrinsic nature of a digital asset, source: SEC Strategic Hub for Innovation and Financial Technology, Framework for Investment Contract Analysis of Digital Assets, April 2019. Courts have applied this distinction by finding some institutional token sales to be investment contracts while not deeming certain secondary market sales as such, as in the XRP summary judgment, source: SEC v. Ripple Labs Inc., SDNY, summary judgment order by Judge Analisa Torres, July 13, 2023. For trading strategy, risk assessment should distinguish primary fundraising transactions from spot secondary trading because the latter received more favorable treatment in the XRP ruling, shaping exchange listing risk and liquidity for XRP, source: SEC v. Ripple Labs Inc., SDNY, summary judgment order by Judge Analisa Torres, July 13, 2023.

According to @iampaulgrewal, the SEC Chairman delivered a history lesson on Howey in the Hills, highlighting the framework used to assess investment contracts under U.S. securities law. Source: @iampaulgrewal on X, Nov 12, 2025. He relays the line “Promises may not remain forever” and argues that when those promises end, an asset’s status as an investment contract should also end, underscoring the potential for time-based changes in classification that market participants track. Source: @iampaulgrewal on X, Nov 12, 2025. The Howey test defining investment contracts originates from the U.S. Supreme Court case SEC v. W. J. Howey Co. in 1946, which provides the legal basis for evaluating whether certain arrangements involve an investment of money in a common enterprise with an expectation of profit from the efforts of others. Source: U.S. Supreme Court, SEC v. W. J. Howey Co., 1946.

According to the source, Paul S. Atkins reportedly outlined which crypto tokens he views as securities, a determination guided by the Howey test and the SEC’s digital asset framework; traders should ground decisions in official SEC guidance and court records rather than commentary. source: user-provided social post; SEC FinHub Framework for Investment Contract Analysis of Digital Assets, 2019; SEC v. W.J. Howey Co., 1946 Tokens already alleged by the SEC to be unregistered securities include SOL, ADA, and MATIC, among others, in its complaints against Binance and Coinbase, which is directly relevant for listing and liquidity risk. source: U.S. SEC v. Binance Holdings Ltd., No. 1:23-cv-01599, filed June 5, 2023; U.S. SEC v. Coinbase, Inc., No. 1:23-cv-04738, filed June 6, 2023 Such allegations have preceded U.S. platform support changes and delistings, which can fragment liquidity and widen spreads for the named tokens. source: Robinhood Markets asset support update announcing end of support for SOL, ADA, MATIC in June 2023; SEC complaints cited above Court outcomes remain mixed, as seen in SEC v. Ripple where institutional XRP sales were deemed securities offerings while programmatic exchange sales were not, creating token-specific precedents that affect venue risk and secondary-market exposure. source: SEC v. Ripple Labs Inc., No. 1:20-cv-10832, summary judgment issued July 13, 2023 Notably, BTC and ETH were not alleged as securities in the 2023 SEC complaints against Binance and Coinbase, so traders often evaluate BTC and ETH pairs as alternative risk venues during altcoin regulatory headlines. source: U.S. SEC v. Binance Holdings Ltd., June 5, 2023; U.S. SEC v. Coinbase, Inc., June 6, 2023

According to Eleanor Terrett, @BakerHostetler lawyer Teresa Goody stated that the Howey Test was never intended to regulate an entire industry or technology. Furthermore, @JohnReedStark highlighted the 'wholesale demolition' of crypto enforcement at the SEC, suggesting significant implications for cryptocurrency market regulation and oversight.

According to @EleanorTerrett, the SEC's Division of Corporation Finance has determined that solo and pool mining activities in proof-of-work systems are not considered securities transactions. This clarification relates to the Howey Test, suggesting that such mining does not meet the criteria of an investment contract, which impacts regulatory oversight and potentially reduces compliance burdens for miners.

According to Jake Chervinsky, the former SEC's interpretation of the Howey test required crypto founders to potentially abandon their projects, which he claims was incorrect. Chervinsky advocates for regulatory approaches that mitigate risk without stifling innovation, suggesting that current strategies may be flawed. This perspective is crucial for traders as regulatory shifts can significantly impact crypto market dynamics and project viability.