# Legal Tests for Securities Classification **Legal Tests for Securities Classification** are a set of frameworks developed by regulators and courts to determine whether a financial instrument or digital asset (like a token) qualifies as a “security” under the law. This classification is critical because securities are subject to strict regulations related to issuance, trading, disclosure, investor protection, and licensing. *** ### 🔍 What Are Legal Tests for Securities Classification? These legal tests are **judicial or regulatory criteria** used to assess the nature of a given financial instrument. If an instrument is classified as a security, its issuance, distribution, and trading must comply with **securities laws**, including registration requirements or exemptions. *** --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.stobox.io/tokenization_framework/phase-3-define-the-tokenization-model/legal-tests-for-securities-classification.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.