Compliance with Securities Laws

The $SPAC3 token is designed to comply with applicable laws and regulations to ensure it is not classified as a security. The token’s structure, purpose, and usage align with frameworks such as the Howey Test and other international standards for token classification.

How the $SPAC3 Token Avoids Security Classification

The Howey Test is the primary framework used in the United States to determine whether an asset qualifies as a security. For a token to be classified as a security, it must meet all four of the following criteria:

1. An investment of money

2. In a common enterprise

3. With an expectation of profit

4. Primarily derived from the efforts of others

The $SPAC3 token has been carefully structured to ensure it does not meet these criteria:

1. Governance Utility, Not Passive Investment:

   • The $SPAC3 token is primarily a governance token, granting holders the ability to participate in decision-making processes, vote on proposals, and shape the direction of the protocol.

   • Token holders do not gain ownership or equity in HyperSPAC3 or its assets, distinguishing it from traditional securities.

2. Decentralized Participation:

   • HyperSPAC3 operates as a decentralized entity, where decision-making is shared among token holders. This decentralized governance structure ensures there is no common enterprise under centralized control.

3. No Guaranteed Profits:

   • $SPAC3 holders are not entitled to guaranteed returns or dividends. While token holders may benefit indirectly from the overall success of the ecosystem, any increase in token value is speculative and driven by market forces, not by promises or actions of the team.

4. Active Community Involvement:

   • Token holders are active participants in the ecosystem, contributing to governance, proposals, and decision-making. This shared responsibility removes the reliance on the "efforts of others" criterion in the Howey Test.

Additional Compliance Measures

To further ensure regulatory compliance, HyperSPAC3 will adopt the following measures:

1. Legal Consultation:

   • HyperSPAC3 is working with experienced legal advisors specializing in blockchain and cryptocurrency regulations. This ensures that all token-related activities are designed to meet the requirements of relevant jurisdictions.

2. Disclosure and Transparency:

   • All token allocations, vesting schedules, and governance mechanisms will be fully disclosed to participants. The project will regularly update its community on any regulatory developments and maintain clear communication about its legal stance.

3. Jurisdictional Flexibility:

   • HyperSPAC3 will initially operate in a crypto-friendly jurisdiction to minimize regulatory risks. Over time, it will monitor and adapt to evolving regulations to ensure long-term compliance.

4. Token Distribution Mechanisms:

   • The token launch will follow best practices for fair launches and public sales, ensuring broad distribution and avoiding concentrated ownership. This minimizes risks associated with centralization and regulatory scrutiny.

Global Considerations

While HyperSPAC3 is designed to comply with the regulatory frameworks of key jurisdictions, participants should be aware of potential legal implications in their home countries. The project does not guarantee compliance in all jurisdictions and encourages participants to consult with legal professionals before engaging with $SPAC3.

Conclusion

By aligning the $SPAC3 token’s structure with regulatory frameworks and prioritizing governance utility over speculative investment, HyperSPAC3 ensures compliance with securities laws and minimizes legal risks. Through decentralized participation, clear disclosures, and legal diligence, the project builds trust with its community and positions itself for sustainable growth.