Explanation:
Tokens that grant holders a share of a company's future profits represent an investment contract or ownership fraction, which functions analogously to traditional equities or bonds. Under global financial regulations (e.g., passing the Howey Test in the US jurisdiction), these are classified as Security Tokens and are subject to securities laws. Utility tokens generally provide access to a product or service, whereas stablecoins are pegged to an external asset like fiat currency.
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Q.67 A small business is considering raising capital through a token offering. They plan to issue tokens that grant holders a share of the company's future profits. According to the categories of crypto assets used by global financial regulators, these tokens would BEST be classified as:
A
Utility Tokens
B
Stablecoins
C
Security Tokens
D
Unbacked Crypto Assets
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