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I'm curious. How is what was flippantly suggested related to securities fraud?
by SubiculumCode 9y ago
I'm curious. How is what was flippantly suggested related to securities fraud?
- toomuchtodo 9y agoSEC regulates crypto currency issuances now.
- ringaroundthetx 9y agothe SEC regulates securities issuances even the SEC's report said not all blockchain based cryptographic tokens are securities, so they're not confused about it, why are you?
- ThrustVectoring 9y agoTechnically, they're claiming that the majority of ICO-style crypto currency issuances have always been under their jurisdiction. They're just not enforcing "Sale of unregistered securities" stuff against ones done before they put the market on notice through their legal findings.
- TheSpiceIsLife 9y agoCrytocurrencies serve one purpose very well: they're presently not being prosecuted as Ponzi schemes. Which they argueably are.
- tradersam 9y agoI don't agree. I believe currencies not backed by countries have a real use in the world, and labeling any and all as a Ponzi scheme is a misnomer. Anything has value if we assign it, and even if 5% of the world considers crypto valuable I'd call that a successful currency, to those who value it.
- losteric 9y agoValue is not the criteria for currency - otherwise Magic cards and Beanie Babies would count. Currencies must be widely accepted in exchange for goods or services. Crypto is promising, but it's not there yet.
- wavefunction 9y agoPonzi?
- TheSpiceIsLife 9y agoYes, thank you. Fixed. Auto-incorrect strikes again.
- ThrustVectoring 9y agoThe SEC has taken a clear position that whether or not it's a "smart contract" or the like makes no material difference into whether or not you are offering a security. Making a cryptocurrency was suggested as a way to finance Tesla's business operations, so it is almost certainly a security in the eyes of the SEC. At this point, your choices are either to sell unregistered securities or to follow SEC rules anyways, at which point, why not just go through conventional channels? "Fund your business by issuing cryptocurrencies" is an idea that will likely end in defending yourself legally against the SEC. Bad idea. I don't recommend it.