A broad legal term for a financial instrument representing an ownership stake, creditor relationship, or right to participate in profits. Tokens representing interests in real estate funds or syndications are almost universally treated as securities under the Howey Test — the SEC’s primary analytical framework for determining whether a digital asset constitutes a security. Characterizing a token as a “utility token” rather than a security does not avoid securities law obligations if the economic substance of the token meets the Howey Test criteria.
Security
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