DAOs and the Global Shift in Decentralized Governance
By Tapan Sangal
The concept of „day-to-day control” serves as a critical regulatory benchmark distinguishing between investment and organizational structures. This principle determines whether an investment qualifies as a Collective Investment Scheme (CIS) or an investment contract by examining whether investors maintain operational control or delegate it to a separate entity.
Global Legal Foundations of Day-to-Day Control
The principle of day-to-day control is embedded in multiple legal frameworks worldwide:
1. United States – Howey Test: Established by the U.S. Supreme Court in SEC v. W.J. Howey Co., this test determines whether an arrangement constitutes an „investment contract” based on the absence of day-to-day control, with management being handled by a separate entity.
2. India – SEBI Act: Section 11AA of the Securities and Exchange Board of India mirrors the Howey Test, using investors’ lack of day-to-day c
We współpracy z: https://cryptodaily.co.uk/2024/12/from-passive-investment-to-active-control
