4 ms·
Regardless, the phrase indicates that they’re not securities. How are they not?
by 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 agoThey 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.