4 ms·

This changes lots of things. You can't just open an DAO/ETH/BTC exchange, you need to be compliant with securities law and regulation. Those who operate as an

This changes lots of things. You can't just open an DAO/ETH/BTC exchange, you need to be compliant with securities law and regulation. Those who operate as an exchange now but do not file the proper paperwork (which is expensive) should expect audits, fines, and shutdown.

brucephillips 9y ago
I don't think the findings unequivocally imply that ETH and BTC are securities. Or am I missing something?
- tannhauser23 9y ago
  It's saying that companies raising money through ICOs are issuing securities in form of ownership tokens in their companies.
  - brucephillips 9y ago
    No, it's specifically referencing "DAO" tokens, which are a subset of tokens sold through ICOs.
- wmf 9y ago
  AFAIK the SEC considers BTC a commodity but that doesn't mean it's unregulated. CFTC, IRS, FinCEN, and state regulations impose all kinds of restrictions on cryptocurrency that almost no companies are following.
oneplane 9y ago
No, they don't. That organisation only works in the USA, they can't do anything for 'the world'. Let me clarify this: Just because the US SEC wants something doesn't make it happen on the internet. They can do things with governments and companies, and that's about it. If some random hacker in Ukraine decides to use a ETH or BTC or smart contract or create a new coin, the SEC isn't going to be able to influence that. There is no point of control there.
- krschultz 9y ago
  Good luck building the "economy of the future" without the US banking system. There is a reason banking sanctions are the US's most powerful non-military diplomatic tool.
  - resf 9y ago
    Tell that to WeChat, Alipay et al.
  - stale2002 9y ago
    If you want to build an economy of the future using the banking system, you already have a much better option. And that much better option is to just use the regular banking system. Cryto currencies have massive costs and disadvantages, and there is no point at all to them if you take about the fundamental premise and purpose of them, which is decentralization.

brucephillips 9y ago

I don't think the findings unequivocally imply that ETH and BTC are securities. Or am I missing something?

tannhauser23 9y ago
It's saying that companies raising money through ICOs are issuing securities in form of ownership tokens in their companies.
- brucephillips 9y ago
  No, it's specifically referencing "DAO" tokens, which are a subset of tokens sold through ICOs.
wmf 9y ago
AFAIK the SEC considers BTC a commodity but that doesn't mean it's unregulated. CFTC, IRS, FinCEN, and state regulations impose all kinds of restrictions on cryptocurrency that almost no companies are following.

oneplane 9y ago

No, they don't. That organisation only works in the USA, they can't do anything for 'the world'. Let me clarify this: Just because the US SEC wants something doesn't make it happen on the internet. They can do things with governments and companies, and that's about it. If some random hacker in Ukraine decides to use a ETH or BTC or smart contract or create a new coin, the SEC isn't going to be able to influence that. There is no point of control there.

krschultz 9y ago
Good luck building the "economy of the future" without the US banking system. There is a reason banking sanctions are the US's most powerful non-military diplomatic tool.
- resf 9y ago
  Tell that to WeChat, Alipay et al.
- stale2002 9y ago
  If you want to build an economy of the future using the banking system, you already have a much better option. And that much better option is to just use the regular banking system. Cryto currencies have massive costs and disadvantages, and there is no point at all to them if you take about the fundamental premise and purpose of them, which is decentralization.