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This isn't a regulated security, so there's no 'official' name for what they're doing. Basically, there was a private offering previously where large amounts w
by Obi_Juan_Kenobi 7y ago
This isn't a regulated security, so there's no 'official' name for what they're doing.
Basically, there was a private offering previously where large amounts were sold to selected parties. What is being blocked is the public 'offering' where these tokens can be publicly traded.
The SEC is saying that Telegram Group is clearly offering a security, and thus is subject to regulation. Indeed, what Telegram is doing is significantly different from 'classic' crypto issuance a la Bitcoin. There was no company or legal entity responsible for Bitcoin, let alone one that could control the network while profiting off of it. They have similar opportunities for the sort of financial malfeasance that the SEC is designed to mitigate.
Personally, I find it extremely difficult to argue with the SEC's position.
I strongly support cryptocurrencies, namely Bitcoin, but also recognize that these pre-mine coins are entirely different on many levels. They are hilariously vulnerable to abuse, only just rising beyond the level of an outright scam.
- aey 7y agoExcept that ethereum and eos basically get a pass by the SEC.
- JumpCrisscross 7y ago> This isn't a regulated security All securities are regulated under American law. Some just qualify for specific exemptions from specific requirements. When someone uses the term “unregulated security,” it’s a reliable red flag to go the other way.
- cortesoft 7y agoI think it is usually people trying to say 'unregistered security', but using the wrong word.
- neom 7y agoIf it's fungible and negotiable, it is a security, if it is a security, it is regulated. If you try to move something that is fungible and negotiable, it is offered, therefore an offering, therefore regulated.
- alasdair_ 7y ago>If it's fungible and negotiable, it is a security, if it is a security, it is regulated. By this definition, Magic: the Gathering cards and beanie babies fall under SEC jurisdiction.
- amanaplanacanal 7y agoThey are not fungible.
- alasdair_ 7y agoOne mint condition card is exactly the same as any other. This is how marketplaces eork.
- airstrike 7y agoNot every security requires registration, though
- narrator 7y agoThe Howey Test[1] is the more precise definition of what a security is. For instance, physical metals are fungible and negotiable, but are not securities in themselves. Gold coin dealers are not regulated by the SEC if they sell you actual physical gold coins. [1] https://consumer.findlaw.com/securities-law/what-is-the-howey-test.html https://consumer.findlaw.com/securities-law/what-is-the-howe...