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Can we make a cryptocurrency that automatically only has value iff it is not declared a security by the SEC? Whenever it is not declared a security, there is a
by btown 9y ago
Can we make a cryptocurrency that automatically only has value iff it is not declared a security by the SEC?
Whenever it is not declared a security, there is an expectation of profits, which would now qualify it as a security under the Howey Test. But if it is then declared a security, then there is no expectation of profits, which would subsequently disqualify it as a security under the Howey Test.
I really REALLY want to see this happen.
- hudon 9y agoThe expectation of profit is at the moment of investment. So even if the SEC declares it a security, you cannot go back in time and change your investors' expectations...
- ubernostrum 9y agoIt likely wouldn't cause anything interesting to happen because real-world law doesn't work like "smart" contracts or computer code. You probably want to read this classic article for a good explanation: http://ansuz.sooke.bc.ca/entry/23 http://ansuz.sooke.bc.ca/entry/23
- deleted 9y ago[deleted]
- bogeyball 9y agoIn order to make this happen you'd need to give away your token to intended users for free, convince them to use it enough to prove it has utility without expectation of direct profits from appreciation of the token itself. That should be justification for the SEC to declare it NOT a security. Then you register it as a security and everybody makes a profit. I think it's an interesting approach and really the right approach. Prove utility before investment.