About the Howey Test
The Howey Test is a critical safeguard for investors, ensuring that financial products—whether traditional stocks or emerging crypto tokens—follow transparency and anti-fraud rules when they qualify as securities. It asks four simple questions:
- Did you invest money?
- Are you part of a common enterprise?
- Do you expect a profit?
- And will that profit come mainly from someone else’s efforts?
If the answer is yes, the law requires sellers to disclose risks and protect investors. Protecting the Howey Test means protecting everyday Americans—watch our video, explore our 2025 Enforcement Report, and share investor education resources to help keep these protections strong.
Watch how four simple questions protect investors—and why keeping the Howey Test strong matters.
2025 Enforcement Report (Based on 2024 Data)
NASAA’s 2025 Enforcement Report highlights the evolving landscape of investor protection, identifying digital assets, pig butchering scams, and other technology-based schemes among the top investor threats. This year’s report reflects the responses of securities regulators in 49 U.S. states and territories covering the 2024 fiscal and calendar years, as well as summary data from securities regulators in the Canadian provinces. It also underscores state regulators’ commitment to safeguarding vulnerable populations—especially older investors—from financial harm.
Learn More About NASAA’s Policy Engagement
NASAA works on a nonpartisan basis with Congress and other stakeholders to protect investor safeguards and uphold the Howey Test. Explore NASAA’s efforts:
- Champion the States as Fraud Fighters in the New Federal Market Structure (Issue Brief)
- NASAA Expresses Concerns Regarding the Digital Asset Market Clarity Act (Letter to Congress, January 13, 2025)
Investor Advisories
What Type of Investor Are You?
NASAA Fraud Center
Investor Library
Multimedia Library
Outreach Programs
Multilingual Resources
Conversation Starters
How to Check Your Investment Professional
