Howey Test

Test to determine if an asset is a security.

Educational content only. This page does not provide investment, legal, or regulatory advice.

Why it matters

Howey Test matters because it affects financial interpretation, product decisions, and industry communication.

Howey Test is commonly explained through its core definition and the practical example used in the glossary.

A common mistake is to use Howey Test without understanding its operational and regulatory context.

Howey Test may vary across payment rails, regulations, and market practices.

3D Secure

Security protocol for online cards.

Account Abstraction

Smart contracts as wallets.

Account Updater

A service that refreshes expired or reissued card details for recurring billing merchants.

Algorithmic Trading

Trading using automated algorithms.

API

Application Programming Interface.

API Banking

Banking services provided via APIs.

EMVCo

EMVCo: EMV 3-D Secure

Primary source for 3DS protocol terminology.

European Banking Authority

European Banking Authority: Strong Customer Authentication

Primary source for SCA and PSD2 compliance context.

Coinbase

Coinbase Learn: Crypto glossary

Reference source for crypto infrastructure terminology.

Author

Founder and multilingual fintech glossary editor

Reviewer

Editorial and source review layer

Reviewed

3/15/2026