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What I don't get is how DAOs are not seriously running aground of SEC regulations. Everyone seems to indicate that DAOs will enable large groups of individuals
by slimsag 5y ago
What I don't get is how DAOs are not seriously running aground of SEC regulations.
Everyone seems to indicate that DAOs will enable large groups of individuals who are not accredited investors to invest in some arbitrary organization, turn a profit on their investment and take it out later. That's a blanket security according to the Howey test.
I also wonder how the regulators will stop this? They can only enforce this at the place of exchange for crypto<->US dollars, I believe, so I imagine a "exchanging crypto for dollars is illegal if it was derived from an unregistered security"
I don't know. I just don't see how these do not end up placing people under serious legal risks.
- yks 5y agoThey are running around regulations and it seems like an actual selling point. For example, read this article from the list: https://blog.aragon.org/what-is-a-dao/ https://blog.aragon.org/what-is-a-dao/. Looks like venture capital is betting that the governments (or just the US government) will stop regulating and/or enforcing anything. That's a non-zero probability unfortunately, at least in short/medium term.