đ· ERC-20 tokens recognized as unregistered securities
đ The Massachusetts federal court granted the SEC's lawsuit against Rivetz Corp and its CEO Steven Sprague.
âĄïž Rivetz raised $18 million by selling Ethereum-based RvT tokens to 7200 investors, and the SEC called this an offering of unregistered securities.
âĄïž Although Steven Sprague claimed that the ERC-20 tokens were a software product, the court concluded that they meet the criteria of the Howey Test, which is used to determine whether an asset is a security.
