SNS fundraising and Howey Test

Hey there, everyone!
I believe this question was already answered, but I can’t find it.

Does SNS take any measures in order to minimize risks of projects, which are tokenized via SNS, relevant to SEC? If I fundraise a project using SNS, can SEC recognize these transactions as investment contracts?

As far as I understand, SEC mainly uses Howey Test, to judge that. But it also seems like this test is positive for SNS’s fundraising algorithm. Could you please elaborate on that also?

Hope, @lara don’t mind the mention.

Thanks in advance!

Fowey → Howey, my bad

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I’m not an expert with US regulations however according to my understanding of the SEC, it all depends on how you do the fundraising. If you are selling part of your project or company during the fundraising then yea the SEC would have questions later. Because at that point investors are getting in with the intention of benefiting later. But if it is just a fundraising like donations then I don’t see a scenario where the SEC would intervene. The SEC is there to protect investors; so it depends on the approach.

Which is the case with SNS, right?

@senior.joinu I would advise SNS interested project to seek legal advice for relevant regulatory frameworks for their jurisdictions.


the Unchained podcast episode “Are DAOs Strong Enough to Survive the Regulators” might help those potentially selling tokens to unaccredited investors in the US market.

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