⚠️ NOTICE TO US RESIDENTS:
The DAT may constitute an unregistered fiduciary service under state laws. Use may violate the Uniform Fiduciary Access to Digital Assets Act (UFADAA). Please check the Howey Prong Analysis and sign up to be notified by ReBlock asap.
Howey Prong:
Assessment of whether your DAT would constitute an investment contract under U.S. securities law
Prong 1: Investment of Money
Do you intend to provide capital or assets with expectation of profits?
Analysis: If yes, describe explicit investment mechanism first.
Medium Risk
Example: References to "transformation into Hyper ledger" and "excess proceeds" in client testimonials could be evidence for SEC, thus caution is strongly advised.
Prong 2: Common Enterprise
Is investor success tied to the efforts of the promoters or third parties?
Analysis: Does your DAT emphasize a person (or persons) for his/hers or their expertise? If yes, it may suggest investor returns would depend on their efforts.
High Risk
Example: Claims like "ReBlock team saved the corporation from liquidation" could demonstrate dependency on promoters in the eyes of SEC.
Prong 3: Expectation of Profits
Are profits expected primarily from others' efforts?
Analysis: Even when not explicitly promising returns, the language may imply value appreciation through:
- Restitution of confiscated assets
- Blockchain-based "transformation" of legacy systems
High Risk
Example: Testimonial stating "excess proceeds" could be viewed as emphasis on asset recovery by SEC.