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That 70 year old law is based on financial models that have been settled for far longer though. I hate to use the overhawked term 'disruption' but ICO's appear

That 70 year old law is based on financial models that have been settled for far longer though. I hate to use the overhawked term 'disruption' but ICO's appear to be causing major issues amongst the status quo.

Alex3917 9y ago
The only innovation that tokens bring to securities is reducing the cost of recording who owns what shares. Which is certainly important, in fact one of the most important innovations since the 1400s, but the idea that this new feature would have any impact whatsoever on the interpretation of our existing securities laws is insane.
- KasianFranks 9y ago
  No it is not. I ran an OTC co and saw the manipulation first hand. You are incorrect. https://news.ycombinator.com/threads?id=KasianFranks&next=14181080 https://news.ycombinator.com/threads?id=KasianFranks&next=14...
  - Alex3917 9y ago
    I didn't say it eliminates the need for third-party auditing, which it doesn't, only that it reduces the cost.
    - KasianFranks 9y ago
      It not only reduces the cost, it keeps people honest, which is what humans like Jamie Dimon and some investors do not like.
      - JumpCrisscross 9y ago
        > which is what humans like Jamie Dimon and some investors do not like There are plenty of people on this thread (myself included) who believe regulators are overdue in cracking down on this space. No need to invoke a bogeyman.
        KasianFranks 9y ago
        They should have cracked down on banks (too big to fail, if you remember) before ICOs and crypto. Lesson learned.
dragonwriter 9y ago
> That 70 year old law is based on financial models that have been settled for far longer though No, it's based on the language of a statute that's about a decade older. Now, the statute may be based on older financial models, but that doesn't control the case law, and disrupting the financial model doesn't, in and of itself, amend the statute underlying the case law.

Alex3917 9y ago

The only innovation that tokens bring to securities is reducing the cost of recording who owns what shares. Which is certainly important, in fact one of the most important innovations since the 1400s, but the idea that this new feature would have any impact whatsoever on the interpretation of our existing securities laws is insane.

KasianFranks 9y ago
No it is not. I ran an OTC co and saw the manipulation first hand. You are incorrect. https://news.ycombinator.com/threads?id=KasianFranks&next=14181080 https://news.ycombinator.com/threads?id=KasianFranks&next=14...
- Alex3917 9y ago
  I didn't say it eliminates the need for third-party auditing, which it doesn't, only that it reduces the cost.
  - KasianFranks 9y ago
    It not only reduces the cost, it keeps people honest, which is what humans like Jamie Dimon and some investors do not like.
    - JumpCrisscross 9y ago
      > which is what humans like Jamie Dimon and some investors do not like There are plenty of people on this thread (myself included) who believe regulators are overdue in cracking down on this space. No need to invoke a bogeyman.
      - KasianFranks 9y ago
        They should have cracked down on banks (too big to fail, if you remember) before ICOs and crypto. Lesson learned.

dragonwriter 9y ago

> That 70 year old law is based on financial models that have been settled for far longer though No, it's based on the language of a statute that's about a decade older. Now, the statute may be based on older financial models, but that doesn't control the case law, and disrupting the financial model doesn't, in and of itself, amend the statute underlying the case law.