Is Crypto a Security? A 2026 Primer on How U.S. Law Applies to Tokens (Part 1)

Part one of a 2026 legal guide explains how U.S. securities law is applied to crypto mainly through the Howey “investment contract” framework rather than a digital-asset-specific statute. It outlines the four Howey elements and describes how courts assess token sales by focusing on economic reality, marketing, and issuer conduct. The report also highlights the growing distinction between a token and the investment contract that may arise from how it is offered or sold.