Security tokens are cryptoassets that are legally considered securities. For US markets, these are typically tokens that pass the Howey Test, and often derive their value from an external asset such as corporate equity or real estate. Security tokens are intended to create a regulatory-compliant vehicle that aims to address many perceived issues in the utility token model. As self-declared investment vehicles conforming to securities regulations throughout the entire life of a token, from issuance to trading security tokens enable a number of structures and innovations, such as legal rights or defined cash flows. Tokens deemed securities are subject to special regulations, and projects fundraising through sale of tokens deemed securities without such registration can face legal repercussions.