The United States Securities and Exchange Commission uses the Howey Test to determine if something is an investment contract. It has four prongs:
- Investment of money: Did you pay for it?
- Common enterprise: Are you pooling resources?
- Expectation of profit: Do you expect a financial return?
- Efforts of others: Are profits reliant on someone else’s work?
Optio nodes and digital rewards do not meet these criteria because there is no guaranteed profit, and the community drives the blockchain’s success.
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