Re:We asked the SEC for reasonable crypto rules. We got lega...
by gamblor956 on Thursday March 23, 2023 @01:24PM
(#35278130)
"Effort of others" means from the perspective of the putative investor, not the business at issue.
Or applied to this situation: Howey is applied from the perspective of Coinbase's customer's supplying the crypto to be staked by Coinbase, the business. From their perspective, the "effort of others" is Coinbase's efforts via it's staking service.
Therefore, the staking arrangement is an investment contract, which is a security. (And in most cases, the underlying staked crypto itself is also a security.)
Or applied to this situation: Howey is applied from the perspective of Coinbase's customer's supplying the crypto to be staked by Coinbase, the business. From their perspective, the "effort of others" is Coinbase's efforts via it's staking service.
Therefore, the staking arrangement is an investment contract, which is a security. (And in most cases, the underlying staked crypto itself is also a security.)