What Are Security Tokens?

in bitcoin •  6 years ago 

What Are Security Tokens?

A crypto token that passes the Howey test is deemed a security token. These usually derive their value from an external, tradable asset. Because the tokens are deemed a security, they are subject to federal securities laws and regulations. If the ICO doesn’t follow the regulations, it could be subject to penalties.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

@geovaniiworld, I gave you a vote!
If you follow me, I will also follow you in return!
Enjoy some !popcorn courtesy of @nextgencrypto!