Attorney Jeremy Hogan has started the US Howey Test, which determines whether leading crypto assets are securities. It has previously done the same test for Bitcoin, Ethereum, Binance Coin, Tether and Ethereum.
This time, Attorney Hogan has tackled Cardano, DOGE, Uniswap, Polkadot, and XRP. Cardano and DOGE were among the largest cryptos in terms of both user base and value. ADA holders for Cardano can rest easy as it is very unlikely to be on the SEC’s radar.
According to Hogan, Cardano’s move to first sell ADA tokens in the Japanese market was a genius move.
The lawyer said:
About 95 percent of the ICO was owned by Japanese citizens. ADA would then travel to America via exchanges. This puts Cardano out of the SEC’s reach
Hogen has assigned Cardano an SEC hazard rating of 2.5/10.
For Dogecoin holders, the situation is even better than Cardano. A week after the project launched in 2013, 5 percent of DOGE cryptocurrencies were mined. A year later, 95 percent of DOGE coins were issued. As he saw no issues for Dogecoin, Hogan gave DOGE an SEC hazard rating of 2/10.
The lawyer then moved on to two of the most exciting projects in the industry. The situation is not the same for Polkadot and Uniswap. Polkadot’s main problems stem from the Web3 Foundation, which created the project and raised over $200 million. The foundation sold some of the tokens before the DOT token was issued. This sale made the case even more incriminating. This sale indicates that the first buyers will influence the price of the DOT. Thus putting Polkadot on the SEC’s radar. Polkadat also allegedly blocked Chinese and American investors from purchasing DOT tokens. According to Hogen, Polkadot has received an SEC hazard rating of 5/10.
Washington-based attorney Stephen Palley has stated in the past that Uniswap believes the UNI token is “almost a security.”
Uniswap, on the other hand, did not pre-sell like Polkadot. Instead, it was airdropped. This puts the UNI coin in an unattractive position. With all this in mind, Uniswap earned an SEC hazard rating of 4/10, according to Hogen.