Miles Jennings on Farcaster

Miles Jennings pfp

The critical takeaway here isn't about memecoins. It's that the SEC's interpretation of Howey continues to be that an investment contract may exist based on the "economic reality" of an arrangement. The SEC's recent optimistic approach to the industry and the dismissal of many of its cases has led a lot of people to believe that "everything is legal". That's particularly true because most of the cases the SEC has been dropping/settling involved arguments by the defendants that, rather than "economic reality," Howey's investment contract analysis hinged on whether there was a formal contract. So, if the dismissals were a sign that the SEC was accepting of this "predicate contract" argument (and abandoning the "economic reality" argument), nearly every token in existence would be legal. This release confirms the SEC doesn't believe "everything is legal" and that's a good thing.

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John Hoang pfp

Does this mean that memecoins with fair launches are legal, but the ones that rug are illegal because they differ in the economic realities?

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binji pfp

Thank you as always for all of your insights Miles!

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Gnericvibes pfp

Thank you for breaking this down

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↑🎩runn3rr.eth pfp

↑🎩runn3rr.eth

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Phil Cockfield pfp

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CHRIS DOLINSKI pfp

Interesting dm’d

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McBain pfp

Just so I get what you're say Company A says, "This is a memecoin" and there is none of the hallmarks of the howey test, that's probably ok Company B says, "this is a memecoin" but they offer dividends and make promises about returns and ownership rights, they are probably fucked

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0xen 🎩 pfp

do you think 'art coins' eg zora's new erc20 will be treated as collectibles as well?

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Klassman.eth pfp

This is good news! I wish the big guys would deal with this properly and not let all projects go under the knife. it would be fair.

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