Updates to the definition of what constitutes a security include: An investment contract, except for any digital asset that meets one of the following criteria, is assumed to be not an investment contract.
The aforementioned criteria are to some extent a written reading of the Hue test - which is the federal standard for assessing whether an asset qualifies as an investment contract - as translated into digital assets. >
Howie test says: For the purposes of the Securities Law, an investment contract (not defined by law) means a contract, transaction, or scheme in which a person invests his money in a joint venture and leads to Expect profits only from the efforts of the promoter or the third party.
In determining what preserves digital assets from this last qualification for a third-party job, the new California bill says: Any network participant can make any changes to the code For the program upon which this origin is based. Voting rights to the network are granted to each owner of the asset.
Date of the bill and its potential impact
The bill comes from California State House Majority Leader Ian Calderon. Calderon first submitted his bill to modernize the Securities Law in February. But in the new updates, the focus is on the role of digital currencies.
While the Federal Securities and Exchange Commission has been very active in controlling cryptocurrencies, industry participants have consistently objected to the lack of little basis to confirm whether tokens were Their own are securities or not.
The Securities and Exchange Commission issued directives on this topic last year, but this directive did not change any laws.
And while some federal lawmakers have tried to make securities regulation more clear for cryptocurrencies, nothing has passed.
The Securities and Exchange Commission has influence at the national level. Although the United States views California as an important test of new technology policy, digital assets are fast at transcending national borders.
It is difficult to imagine a revolutionary initial coin ...
