Test Your Knowledge
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1. What is the purpose of the Howey Test in relation to cryptocurrencies?
A) To determine whether a crypto asset qualifies as a commodity.
B) To assess if a crypto project is compliant with tax laws.
C) To determine whether a crypto asset is a security and subject to SEC regulations.
D) To measure the volatility of a cryptocurrency.
2. Which of the following is an example of a cryptocurrency project that is likely considered a security based on the Howey Test?
A) Bitcoin, as it operates in a decentralized manner.
B) An ICO that promises future profits based on the efforts of a central team.
C) Ethereum, due to its decentralized structure.
D) A cryptocurrency like Dogecoin, with no central promoter.
3. How does the SEC impact the cryptocurrency market?
A) By regulating the mining operations of cryptocurrencies.
B) By enforcing securities laws and regulating ICOs, token sales, and crypto investment products.
C) By creating and issuing new cryptocurrencies for investors.
D) By controlling the price of Bitcoin and other cryptocurrencies.