Ok, Houston we’ve good news!
A legal opinion on the status of a token depends on the specific facts and circumstances regarding its creation, distribution, use and other relevant information. Generally speaking, tokens can be classified as securities or commodities depending upon their characteristics such as whether they are intended to represent an ownership interest in a company or enterprise (i.e., equity tokens) or if they have utility value that allows them to be used for purchasing goods or services within a given system (i.e., utility tokens).
We received an Independent legal opinion on Avatly (AVA) token from the Belenky law firm based in Houston US. The Howey Test is a test used to determine whether the token may be considered a security. AVA met the Howey test (created by U.S. Supreme Court), which means that AVA does not constitute a “security” token.
The space is open!