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It’s not a security, my friend. Crypto is the land of no rules and caveat emptor.
by JohnJamesRambo 5y ago
It’s not a security, my friend. Crypto is the land of no rules and caveat emptor.
- SilasX 5y agoBut Bitcoin options on e.g. LedgerX.com are securities (edit: regulated ones, that is), and anything that affects Bitcoin’s price is going to affect those derivatives’ prices.
- ianai 5y agoSeems trading firms largely facilitate trading it btc and other cryptos. If they’re not legally regulated as securities then it may be time for that regulation. Or simply being disallowed for such trading firms.
- SilasX 5y agoLedgerX (now FTX US derivatives) is regulated. (Sorry, forgot to mention it in the first comment -- that was the whole point of bringing it up in this context.)
- vageli 5y ago> But Bitcoin options on e.g. LedgerX.com are securities (edit: regulated ones, that is), and anything that affects Bitcoin’s price is going to affect those derivatives’ prices. But the SEC doesn't regulate mortgages even though there are derivative securities that are regulated. SEC regulates the asset backed securities but not the assets underlying those securities.
- SilasX 5y agoThe question was whether the SEC would have jurisdiction. The manipulation affects securities that the SEC would have jurisdiction over, so it would follow that they do. If not, it would be a pretty gaping hole in their mandate: "It's fine to manipulate X and profit from that, but not to profit from the regulated derivatives that closely track X."
- vmception 5y agoThey're regulated by the CFTC which also does not use the Securities Act The CFTC literally just got a fraud statute in 2010 They mostly follow their earlier mandate and the new mandate doesn’t alter it too much Trying to apply it to spot assets just because a derivative market is affected requires a huge stretch and risk of getting the agency embarrassed and curb stomped in the courts