What Are Utility Tokens?

What Are Utility Tokens?

Utility tokens are internal tokens of the platform that can be used for paying for services. Such tokens do not generate passive income for their owners. They are not subject to federal securities laws, either. You won’t find too many utility tokens these days. According to the former CFTC chairman Gary Gensler, even Ether (ETH) and Ripple (XRP) can be viewed as securities.