Krutika Adani
It is solely due to the Howey Test that Bitcoin and Ethereum were not classified as securities by the SEC, which had every desire to reject them.
Anything that is a security has to be under the purview of the SEC as per the US SEC Act of 1934.
The test is mandated by the US Supreme Court and helps decide if a financial asset is a security.
The test lays down four criteria based on which a security classification is done.
According to the test, XRP, Solana, and Dogecoin are also not considered securities, and we might soon expect ETFs based on these assets.