On 17 June 2026, the High Court handed down judgment in the case of ASIC v Web 3 Ventures [2026] HCA 21. This was an appeal from the Full Court of the Federal Court. The High Court upheld the appeal, finding the crypto-asset product known as Earner was a derivative within the meaning of the Corporations Act 2001 (Cth) (‘Act’). However, this does not mean the saga is over. Questions concerning penalty remain unresolved.

The Full Court initially considered an appeal of the first instance decision by Jackman J. His Honour had found Earner was a managed investment scheme (but not a derivative) and therefore Web 3 was required to hold an Australian Financial Service Licence (‘AFSL’). His Honour had, however, found a…