Our partner Mauricio Jayme e Silva spoke to Valor Econômico about the Securities and Exchange Commission’s decision to immediately suspend (‘stop order’) trading in the Eike Token ($EIKE), under penalty of a daily fine of R$100,000, on the grounds that the digital asset – linked to a ‘supercane’ production project – qualifies as a security.

The article states that, according to the regulatory body, the people and companies involved are not authorised by the CVM to act as offerors of securities to the Brazilian public.

Maurício explained to the newspaper that the CVM uses the Howey Test, inspired by US legislation, to assess whether a token qualifies as a security. According to him, the definition appears in Law 6.385/1976, which includes a list of examples and an item that defines as a security any security with a public offering that generates remuneration for the investor based on the efforts of third parties.

‘No matter what name is used, if it has these criteria, it will be considered a security and therefore the issuer, the offer and the security must be registered with the CVM, or at least submit to Resolution 160,’ he said. ‘Even if the issue is outside Brazil, if it is aimed at people resident in Brazil, the CVM has the power to demand registration,’ said our partner, who also worked as legal manager at BSM, B3’s self-regulatory organisation.

Check out the full article: https://valor.globo.com/financas/criptomoedas/noticia/2025/04/03/cvm-emite-stop-order-para-negociaes-do-eike-token.ghtml