John E Deaton named another example of SEC manipulation of the Howey test

Lawyer John E Deaton named another example of SEC manipulation of the Howey test.

Lawyer John E Deaton on twitter named another example of SEC manipulation of the Howey test. He did this in response to this post:

Bloomberg on SEC investigation into Coinbase offering staking. Many exchanges & cryptos offer staking. These actions by the SEC are very serious. If you look at SEC v Wahi it is clear that the SEC regards staking as a Howey “effort” of others.

He further noted:

This is another example of the SEC’s attempt to stretch the Howey case beyond recognition. The “efforts of others” prong of the Howey test is supposed to be tied to the promoter of the token, not other independent entities. It’s called an investment contract w/a company.