Definition ∞ Securities and futures are types of financial instruments traded in capital markets, representing ownership or a future obligation. Securities typically include stocks and bonds, representing equity ownership or debt obligations, while futures are standardized contracts to buy or sell an asset at a predetermined price on a future date. These instruments allow investors to gain exposure to various asset classes and manage financial risks. They are central to traditional financial systems, facilitating capital formation and price discovery.
Context ∞ The classification of digital assets as securities or futures is a fundamental regulatory challenge that significantly impacts their legal treatment and market operations. Jurisdictions globally are grappling with applying existing definitions to novel crypto assets, leading to varying interpretations and regulatory outcomes. A key debate centers on the “Howey Test” and similar frameworks used to determine if a digital asset constitutes an investment contract. The future will likely involve ongoing legal clarification and the development of specific regulatory guidelines for digital assets within these categories.
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