Is Steem a tradeable security?
"If you have been following the news over the past few days then you will no doubt have heard of the “Howey test” and whether it can be applied to cryptocurrencies"
"A transaction will be considered an offering of securities if:
It is a contract or transaction for an investment of money, The investment of money is in “a common enterprise,” The investor has an expectation of profits from its investment, and Those profits would come from the efforts of others, such as a promoter."
"Whether a digital asset is considered a security depends on the circumstances and facts surrounding the original investment. Clayton gave an example: when investors (who have “pooled” assets to contribute to funding a project) no longer expect a dev (or group of devs) to carry out managerial or entrepreneurial efforts, their investment may no longer be considered a security."
"Nonetheless, investors who have moved quickly to buy up the latest digital currency in the hopes of turning a profit are undoubtedly engaging in behavior that could be characterized as speculation.
From the perspective of the Howey Test, the operative question, in this case, is whether or not cryptocurrency investors are participating in a speculative enterprise, and if so, if the profits those investors are hoping for are entirely dependent upon the work of a third party."
"Cryptocurrencies Fit the Definitions According to the Howey Test. The SEC has deemed that cryptocurrencies pass the Howey Test and therefore are securities and subject to regulation."