cryptocurrency, bitcoin, ethereum, crypto
One of the four requirements of the Howey test to determine if an investment is a security is whether an investor’s expectation of profit stems from the efforts of others.
The efforts of others must be “undeniably significant ones." Efforts that merely "contribute" may not be sufficient for a finding that the investment is a security.
The efforts must be "managerial" and affect the success or failure of the investment.
A mere increase in value on a secondary market is not sufficient to be considered an increase from the efforts of others.