---
type: claim
title: Living Capital's Howey test analysis
domain: internet-finance
confidence: likely
date_claimed: 2024-01-15
source: "Living Capital whitepaper; internal legal analysis"
---

[Original content preserved]

### Additional Evidence: GENIUS Act stablecoin framework (March 2025)

The GENIUS Act's classification of payment stablecoins as non-securities provides relevant context for Living Capital's regulatory analysis. If Living Capital vehicles hold payment stablecoins as underlying assets, this reduces ambiguity about the asset layer — the stablecoins themselves are federally established as non-securities.

**Critical nuance**: This does not exempt the vehicle structure from Howey analysis. The Act exempts payment stablecoins from securities classification, but interests in vehicles holding stablecoins may still be securities depending on the structure. The Howey test still applies to:
- Whether investors have a reasonable expectation of profits
- Whether profits derive from the efforts of others
- Whether there is a common enterprise

The stablecoin classification reduces one layer of regulatory uncertainty (the underlying asset) but does not resolve the vehicle-level classification question.

Source: [[genius-act-establishes-payment-stablecoins-as-non-securities-under-federal-law]]