7 Important Things About Whether Crypto Includes Securities: DeFi, Staking, Airdrops, and NFTs

Jakarta, Pintu News – The question of whether cryptocurrencies are securities continues to be a hotly debated legal issue as the digital asset ecosystem develops, especially in the context of decentralized finance , staking programs, token airdrops, and non-fungible tokens (NFTs).

The discussion involved an in-depth analysis of the Howey Test, the US legal framework for determining whether an instrument is considered a security, which is now being carefully applied to new innovations in the crypto space. In this article, we summarize some of the key aspects highlighted by regulators and legal analysts.

1. Howey Test is still the main reference

In the legal analysis of whether a crypto transaction is a security, US courts and regulators still use the Howey Test as a basis. The Howey Test assesses whether there is an investment of money, common enterprise, expectation of profit, and efforts of others. Howey’s application depends on the characteristics of the transaction, not just the technology or the name of the asset.

This framework makes the evaluation of staking, airdrops, DeFi, and NFTs complex as they do not necessarily involve a single issuer as in traditional token offerings. Such analysis shows that the boundaries between securities and non-securities in crypto practice depend on the economic context.

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2. Staking Programs Can Be Worth Treating Differently

Staking programs, where asset holders “lock in” tokens to receive rewards, are closely monitored by regulators. Where staking is conducted through an entity that pools assets, determines the level of rewards, and manages the proceeds for the benefit of participants, this activity may be treated as a security as it satisfies the element of expectation of profit from others’ efforts.

However, if users are staking directly into the protocol or validator without a significant operator role, this activity is more likely to be viewed as receiving a gift or “receipt”, rather than an investment contract, while not qualifying as a traditional security.

3. DeFi Liquidity Pools and Tokenized Loans Pose Challenges

DeFi protocols that provide liquidity pools and token lending services increase the complexity of securities analysis due to the automated nature of smart contract interactions. Regulators focus on whether the developer retains control or impact over market parameters, such as APY or incentive allocation.

If technical or economic decisions are made by parties who can influence the outcome – such as developers with admin keys – the transaction can be viewed as participation in a concerted effort where the expectation of profit is dependent on the efforts of others.

4. Airdrops Are Not Automatically Free of Securities

Free token airdrops are often considered safe from securities regulation because they do not require an initial investment. However, regulators say that airdrops can be part of an investment scheme when distributions are made to build speculative momentum, attract market demand, or when marketing materials encourage expectations of profits.

It should be noted that the structure and context of airdrop promotions – including tasks such as promotions or referrals – may reflect an endeavor akin to investment if participants anticipate gains stemming from the actions of others.

5. NFT is generally not a security if it is for consumption

Most non-fungible tokens (NFTs) are used as unique digital goods, such as art, collectibles, or access to services, and do not fulfill the elements of a classic investment contract so they are generally not treated as securities.

However, NFTs that are bundled with the promise of revenue, royalty sharing or profit rights from a particular project may come close to the definition of securities due to the expectation of profits stemming from the developer’s efforts. Fractionalized NFTs may also present securities issues as the purchase of ownership shares is typically viewed as an investment.

6. “Economic reality” is more important than technological terms

Analysis of crypto securities shows that what happens economically is often more decisive than the inherent technological label. Courts do not automatically make every token or NFT a security just because it is associated with a blockchain; the focus is on whether participants are participating in an investment contract based on the expectation of profit from the efforts of others.

This approach aims to translate traditional legal principles into the context of digital innovation, emphasizing the context and role of those who manage or promote such mechanisms.

7. Regulations will Continue to Evolve

As DeFi, staking, airdrops, and NFTs continue to evolve, legal analysis becomes increasingly important to determine whether an activity or instrument is treated as a security. Rule developments in various jurisdictions are monitored intensely by industry participants, regulators, and lawyers to reduce uncertainty and establish clearer guidelines.

FAQ

What is the “Howey Test” and why is it important for crypto?

The Howey Test is a legal standard in the US for determining whether a transaction is an investment contract or a security. It assesses the elements of investment of money, effort of the other party, expectation of profit, and joint venture.

Are crypto stakes always considered securities?

Not always; staking through a party that controls outcomes and rewards can look like a security, while staking directly into the protocol with no direct operator role usually does not meet the criteria of a security.

Are free airdrops safe from securities rules?

Not automatically; if an airdrop is done to attract speculation or future profits and is promoted with the expectation of profit, it could be judged as part of an investment contract.

How does the law view NFTs in terms of securities?

NFTs that are used for consumption or service access are generally not securities, but NFTs that promise income or royalties from the project could be considered securities.

What best determines whether a crypto is a security?

Regulators look at the economic reality of the transaction: whether participants expect profits to come from the efforts of others. This is more important than the label or the underlying technology.

Reference

• Bitcoin.com News. Is Crypto a Security? (Part IV: DeFi, Staking, Airdrops, NFTs). Accessed December 19, 2025