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It's an interesting distinction which begs the question of how securities enforcement will work on currencies which start off looking like securities and "evolv

by jjxw 8y ago

It's an interesting distinction which begs the question of how securities enforcement will work on currencies which start off looking like securities and "evolve" out of that designation like Bitcoin and Ether did. As implied by the statement, the "fundraising that accompanied the creation of Ether" would probably qualify as a securities offering since it absolutely relied on central actors to maintain initial development until it had grown sufficiently to become more of a decentralized platform. At what point are token purchases no longer protected by securities law? The SEC (or SEC leadership) has shown a willingness to take a fairly nuanced view on how cryptocurrencies are classified. Will be interesting to see how this thinking evolves as nuance comes with complexity.

fredgrott 8y ago
be careful of relying on that quote..Ethereum applied and got registered to fund raise under current laws...see the blog announcemnet of said crowdsale: https://blog.ethereum.org/2014/07/22/launching-the-ether-sale/ https://blog.ethereum.org/2014/07/22/launching-the-ether-sal...
- deltateam 8y ago
  Applied is a mischaracterization of what Ethereum did. Ethereum got a legal opinion from a law firm in the United States, and simultaneously convinced the regulators in the Canton of Zug, Switzerland to create a completely new term for them. State regulations in the Swiss Confederacy extend to the sovereign protection of the Switzerland brand and all of its economic treaties. Ethereum nor the Ethereum foundation applied for US securities anything. Not a Reg D offering, not Reg S, not anything. The parent question remains valid: if one did register as a security, how does the asset transition to not being a security. Sounds like we need a new Reg for transitional securities. As it stands, the SEC is still applying its broad discretion to not levy criminal and civil sanctions to unregistered transitional securities.
clarkmoody 8y ago
Small correction: Bitcoin did not start as a fundraiser.

by jjxw 8y ago

fredgrott 8y ago

be careful of relying on that quote..Ethereum applied and got registered to fund raise under current laws...see the blog announcemnet of said crowdsale: https://blog.ethereum.org/2014/07/22/launching-the-ether-sale/ https://blog.ethereum.org/2014/07/22/launching-the-ether-sal...

deltateam 8y ago
Applied is a mischaracterization of what Ethereum did. Ethereum got a legal opinion from a law firm in the United States, and simultaneously convinced the regulators in the Canton of Zug, Switzerland to create a completely new term for them. State regulations in the Swiss Confederacy extend to the sovereign protection of the Switzerland brand and all of its economic treaties. Ethereum nor the Ethereum foundation applied for US securities anything. Not a Reg D offering, not Reg S, not anything. The parent question remains valid: if one did register as a security, how does the asset transition to not being a security. Sounds like we need a new Reg for transitional securities. As it stands, the SEC is still applying its broad discretion to not levy criminal and civil sanctions to unregistered transitional securities.

clarkmoody 8y ago

Small correction: Bitcoin did not start as a fundraiser.