Digital Assets

What this video covers

• The four prongs of the Howey test and why an identifiable promoter's managerial efforts drives prong four
• Why calling a token a utility token does not prevent it from being a security, and why regulators look at economic reality instead of labels
• Why Bitcoin is generally treated as a commodity, and why sufficiently decentralized is simply shorthand for failing prong four
• Which of the four federal authorities, Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), Internal Revenue Service (IRS), or Financial Crimes Enforcement Network (FinCEN), applies to a given digital asset transaction
• Why a crypto-to-crypto exchange is a taxable property disposition even when no cash changes hands
• The six core risks every advisor must disclose, custody, cybersecurity, market and liquidity, technology, fraud, and regulatory risk
• Why Federal Deposit Insurance Corporation (FDIC) and Securities Investor Protection Corporation (SIPC) protections do not automatically cover digital assets held on a platform