$145.55 1.73%
ETH · 117w

RocketICO and W. J. Howey Co against the United States Securities and Exchange Commission

RocketICO and W. J. Howey Co against the United States Securities and Exchange Commission

In 1933 in the USA W. J. Howey Co lawyers sued the United States Securities and Exchange Commission in order to figure out which of the financial transactions should be considered as an investment contract. None of the participants in the trial could expect that the outcome of the case would have an impact on the blockchain-community supporters in the 21st century.

The “Howey test”, according to which a decision is made whether to accept an agreement as a security or not, gave great importance to the trial. The test determines whether the transaction is related to the investment contract. And the investment contract is a type of security.

In 1994 Nick Szabo proposed the idea of smart contracts based on cryptography that could replace traditional contracts based on law. Equitable and accurate smart contracts will be protected from unfair judgments of courts and ambiguous interpretations of conditions, will also provide better security and reduce transaction costs.

Practically, the implementation of the idea became possible in 2008 thanks to the blockchain technology, and when the Ethereum platform appeared, smart contracts were put into practice.   Today governments of states still weakly regulate the cryptocurrency and token market.

However, more and more countries start paying attention to the explosive growth of the popularity of blockchain and smart contracts because in fact, all the larger financial flows pass by the state treasury. Therefore, the USA, Singapore and Canada have already recognized digital tokens as a security. This definition imposes a number of responsibilities in the conduct of the ICO, which intend to attract citizens of these countries.

This situation scarcely can satisfy the “blockchain-evangelists” and blockchain-enthusiasts who see smart contracts as a possibility of creating an international economic syste...

Continue on
Recent news
ETH +1.73% · · Now

The 1.x Files: a fast-sync

ETH 1.x: a fast sync The new direction of ETH 1.x research has begun proper, with a focus on moving the current Ethereum chain towards the ‘stateless client’ paradigm, with the eventual target being a...
ETH +1.73% · · 1h

Blockport found a new partner!

We're excited to bring good news to the community. It's a very positive step forward for everyone involved, and it brings us a step closer to our dream of bridging the traditional world of finance wit...
ETH +1.73% · · 9h

BitPay Announces Support for Three Stable Coins

Highlights: BitPay to start supporting three more Stable CoinsBitPay notably did not issue support for USDTUSDC, GUSD and PAX can now be transferred with BitPay Founded in 2011, BitPay is a payment pr...
ETH +1.73% · · 10h

Creators of tBTC to Launch tZEC Token on Ethereum

Thesis, the team behind the cross-chain tBTC token, have vocalized their intentions to bring ZEC to Ethereum in a recent GitHub proposal. The proposal includes ... Read moreCreators of tBTC to Launch ...
ETH +1.73% · · 11h

How Ethereum helps sell CBD

Selling weed is a tricky business. We sat down with Treum co-founderTyler Mulvihill to find out how blockchain can help ensure companies stay in the green.