You heard about Howey test used in the USA?
"a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party,"
1946 Supreme Court case: SEC v. W.J. Howey Co., FL.
I don't know enough about LEO. The little I know about PAL leads me to believe it might not match the Howey test.
Tokens may be bought - but much of the original issue was not. (unclear, maybe yes)
The Enterprise is common (imo no, you post for yourself, curate for yourself)
Profit solely from the efforts of others (no, you post for yourself, curate for yourself)
Additionally, you can argue PAL's a utility token; Can be spent for upvotes (utility) or staked to improve curation earnings. One wrinkle is that inflation granted to stakers might represent a profit from the effort of others.
No doubt PAL is an asset of a kind, and PAL earned (e.g. curation) is income of a sort.
Depending on where on lives, this is probably taxable. Doesn't make it a security though.
Very true @eturnerx
what would you say about PAL and LEO ? And do you know any token on steem-engine that you would surely consider being a security?
Cheers
Piotr
You heard about Howey test used in the USA?
"a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party,"
1946 Supreme Court case: SEC v. W.J. Howey Co., FL.
I don't know enough about LEO. The little I know about PAL leads me to believe it might not match the Howey test.
Additionally, you can argue PAL's a utility token; Can be spent for upvotes (utility) or staked to improve curation earnings. One wrinkle is that inflation granted to stakers might represent a profit from the effort of others.
No doubt PAL is an asset of a kind, and PAL earned (e.g. curation) is income of a sort.
Depending on where on lives, this is probably taxable. Doesn't make it a security though.
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I've never heard about that case @eturnerx. Thx for pointing me in that direction.