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But is Lend a security? As far as I can tell, there's no contract for capital flows that you can trade with others. Lend isn't fungible, the USDC is.
by davedx 5y ago
But is Lend a security? As far as I can tell, there's no contract for capital flows that you can trade with others. Lend isn't fungible, the USDC is.
- ketzo 5y agoAs I understand it, there doesn’t need to be a liquid market for something in order for it to be a security; just an investment of capital with the expectation of return through the efforts of a third party (the Howey test)
- tylerhou 5y agoStartup stock is a security, despite trade restrictions (e.g. right of first refusal). Same with restricted (i.e. unvested) stock units.
- dboreham 5y agoEveryone in the cryptocurrency industry is familiar with the Howey test.
- JumpCrisscross 5y ago> is Lend a security? According to Coinbase, the SEC said "they consider Lend to involve a security." Not that it is a security. The second question is (a) more ambiguous and (b) a red herring from Coinbase. If Coinbase is taking deposits from customers to engage in securities trading, it's acting as a bank or broker-dealer. It is registered and regulated as neither. Note that Kraken and Gemini have state banking charters. Coinbase is drawing a false equivalence. The entire enterprise stinks of bad faith, possibly fraud.