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Probably that they have been registered with the SEC.

by izzydata 4y ago

Waterluvian 4y ago
Regardless, the phrase indicates that they’re not securities. How are they not?
- wmf 4y ago
  "If the network on which the token or coin is to function is sufficiently decentralized – where purchasers would no longer reasonably expect a person or group to carry out essential managerial or entrepreneurial efforts – the assets may not represent an investment contract. Moreover, when the efforts of the third party are no longer a key factor for determining the enterprise’s success, material information asymmetries recede. As a network becomes truly decentralized, the ability to identify an issuer or promoter to make the requisite disclosures becomes difficult, and less meaningful. And so, when I look at Bitcoin today, I do not see a central third party whose efforts are a key determining factor in the enterprise." https://www.sec.gov/news/speech/speech-hinman-061418 https://www.sec.gov/news/speech/speech-hinman-061418
- TimJRobinson 4y ago
  They are fully decentralized networks that no one controls. A security requires some issuing company or person. Almost every other cryptocurrency has one or a small group of person that can take control of the chain / app.
BLKNSLVR 4y ago
I don't think that's how it works. A business registers with the SEC to gain a license to trade securities. Securities themselves don't register. Happy to be educated if above is wrong.
- wmf 4y ago
  Securities do have to register using form S-1. This is required for IPOs, for example.
cdiddy2 4y ago
they have not been registered with the SEC. both are leaderless and therefore lack the ability to register with the SEC
- pwinnski 4y ago
  BTC is leaderless, which seems to be a large part of why the SEC is convinced it is not a security. ETH is not leaderless to the same degree, and to my knowledge has not been declared "not a security" by the SEC in the same way BTC has.
  - cdiddy2 4y ago
    well the CFTC says that it is a commodity https://decrypt.co/123032/cftc-chair-says-ethereum-is-a-commodity-despite-genslers-bitcoin-only-position https://decrypt.co/123032/cftc-chair-says-ethereum-is-a-comm... and in 2018 an SEC commissioner gave a speech in which he said eth was not a security, but the SEC is doing all they can to muddy the waters on that https://cointelegraph.com/news/sec-seeks-to-keep-hinman-documents-hidden-in-ripple-case https://cointelegraph.com/news/sec-seeks-to-keep-hinman-docu...
dheera 4y ago
Uh who would have registered BTC? Satoshi?

Probably that they have been registered with the SEC.

Waterluvian 4y ago

Regardless, the phrase indicates that they’re not securities. How are they not?

wmf 4y ago
"If the network on which the token or coin is to function is sufficiently decentralized – where purchasers would no longer reasonably expect a person or group to carry out essential managerial or entrepreneurial efforts – the assets may not represent an investment contract. Moreover, when the efforts of the third party are no longer a key factor for determining the enterprise’s success, material information asymmetries recede. As a network becomes truly decentralized, the ability to identify an issuer or promoter to make the requisite disclosures becomes difficult, and less meaningful. And so, when I look at Bitcoin today, I do not see a central third party whose efforts are a key determining factor in the enterprise." https://www.sec.gov/news/speech/speech-hinman-061418 https://www.sec.gov/news/speech/speech-hinman-061418
TimJRobinson 4y ago
They are fully decentralized networks that no one controls. A security requires some issuing company or person. Almost every other cryptocurrency has one or a small group of person that can take control of the chain / app.

BLKNSLVR 4y ago

I don't think that's how it works. A business registers with the SEC to gain a license to trade securities. Securities themselves don't register. Happy to be educated if above is wrong.

wmf 4y ago
Securities do have to register using form S-1. This is required for IPOs, for example.

cdiddy2 4y ago

they have not been registered with the SEC. both are leaderless and therefore lack the ability to register with the SEC

pwinnski 4y ago
BTC is leaderless, which seems to be a large part of why the SEC is convinced it is not a security. ETH is not leaderless to the same degree, and to my knowledge has not been declared "not a security" by the SEC in the same way BTC has.
- cdiddy2 4y ago
  well the CFTC says that it is a commodity https://decrypt.co/123032/cftc-chair-says-ethereum-is-a-commodity-despite-genslers-bitcoin-only-position https://decrypt.co/123032/cftc-chair-says-ethereum-is-a-comm... and in 2018 an SEC commissioner gave a speech in which he said eth was not a security, but the SEC is doing all they can to muddy the waters on that https://cointelegraph.com/news/sec-seeks-to-keep-hinman-documents-hidden-in-ripple-case https://cointelegraph.com/news/sec-seeks-to-keep-hinman-docu...

dheera 4y ago

Uh who would have registered BTC? Satoshi?