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A comment on The SEC has told us it wants to sue us over Lend. We don’t know why. Parent comment

Re:The SEC has told us it wants to sue us over Lend. We don’... by thedufer on Wednesday September 08, 2021 @10:52AM (#28457921)
> The Howey test doesn't apply here. If it's not securitized and it's not tradable, it's not a security.

Do you have a reference for that? Because that aspect doesn't sound relevant at all - the court case the Howey test comes from was about securities fitting your description (and, of course, the outcome was that they were considered securities).

The Howey case actually refers to them as "investment contracts", which I presume is language from the securities act itself. This seems like better terminology than "securities", if only because it doesn't so obviously conflict with the colloquial meaning. I'm not sure how we got here from there, although the "securities act" naming probably didn't help.

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Re:The SEC has told us it wants to sue us over Lend. We don’... by dragonwriter on Wednesday September 08, 2021 @11:10AM (#28458230)
> Because that aspect doesn't sound relevant at all - the court case the Howey test comes from was about securities fitting your description

The property sold in Howey was marketable and the service contract was held out to any owner, so while I agree that neither securitization nor marketability are requirements, marketability was present in the Howey arrangement.

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