Outdated stock market regulations shouldn't apply to crypto. It is insane that to determine if crypto is a security we use regulations made in 1933 and 1946. Those were totally different times, decades before crypto was even created!

To regulate crypto and determine if it is security or not SEC and rest of the government use stock regulations, very outdated stock regulations that shouldn't apply in XXI century to anything especially not toward crypto.

Howey test from 1946, which is used to determine if something is security or not is basically a case against guy named Howey and his company that sold land with citrus trees to investors in Florida. So yes crypto is judged based on case of guy that sold lemons, grapefruits and oranges. It is also all based on one judge's (Frank Murphy) opinion. Great law. Some judge had a problem in 1946 with guy selling citrus fruits and in 2023 based in that SEC decide if something is a security or not.

The Securities Act of 1933 was made after Great Depression from 1929. It still (with very minor changes) apply today. Howey test is based on this very outdated act that was supposed to solve problems after stock crash of 1929, not still be a thing 90 years later. Both of those regulations should long ago be removed and instead we should get proper modern regulations, but no... Why even do that? SEC loves to apply their prehistorical laws.

So yes, crypto is regulated by some act from 1933 and case based in this act 1946. Decades before internet was invented, before even first space flight, when no one even dreamed something like crypto will ever exist. Would most people decide to regularly drive a car made in 1933, use fridge, plane, radio or TV from 1946? Of course not. Could be fun to see it, maybe use once or twice, but with current gas prices old car would bankrupt you. Your groceries in old fridge would went bad much faster than in new one and old TV would be black and white and worse quality than watching video on average smartphone. Times change, you can't apply the same opinion about something now as back when our great grandfathers were young.

Some people can ofc say regulations don't apply the same way as tech, sure then you want to talk how women or african americans were treated back in times when those stock market regulation in 1930's and 1940's were created? Why everyone agree most old laws are outdated, unfair, racist, discriminative and then think in case of investing it is different thing and what was true and relevant in times when nazis were still a thing is ok to apply today. The same as most today congressmen are 60 or 70 years old, in 1933 and 1946 those acts were created by guys born just few years after american civil war ended... Also society and market change too. Today average stock or crypto investor is not a guy in 3 piece suit, with hat and a cane, but guy in T-shirt that use laptop to invest and send rocket emojis. Different culture, different society and different ability to invest and DYOR.

No one deciding what security is back in the day had crypto in minds, simply cause there were no crypto back them. So it is unfair and stupid for SEC and anyone else to apply those outdated stock laws in modern world especially toward crypto. Crypto shouldn't be judged on regulations that have nothing to do with it.