Legal agencies petition U.S. Supreme Court to review standards for determining investment contracts

on November 13, according to an announcement by investor advocacy group Investor Choice Advocates Network (ICAN), the organization, along with law firm Paul Hastings, petitioned the U.S. Supreme Court to review the standards for determining investment contracts on behalf of three sales agents.

The petition raises the question of whether a seller’s asset selection, evaluation, and pricing efforts completed prior to the sale can independently qualify an asset as a security, or whether buyers must instead expect profits from the post-sale managerial efforts of others. ICAN stated that federal circuit courts have issued conflicting rulings on this matter, and the issue could impact how securities laws apply to digital assets, artwork, and precious metals.

The filing was made public on November 10, and the Supreme Court has not yet decided whether to hear the case.