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> Staking is a process in which cryptocurrency holders volunteer to take part in validating transactions on the blockchain. For me the key word here is `volunt
by bilekas 4y ago
> Staking is a process in which cryptocurrency holders volunteer to take part in validating transactions on the blockchain.
For me the key word here is `volunteer`. I'm no 'crypto bro' by any means, but can someone tell me why this is against SEC rules ? Or if it explicitly even is ?
- SilverBirch 4y agoIt's a basic regulated market. Because it's so easy to rip people off with financial products (ponzi schemes etc.) the SEC requires you to register a security if you want to sell it to retail. The registration is quite simple but just ensures they've written in black and white what they're claiming to sell. These regulations exist as a direct result of fraud and shenanigans in the past. All that crypto is saying is "Oh this is something new so it's not covered by regulations", but that doesn't stand up to much scrutiny -the business being conducted may be different, but the financial aspects of these products are fairly standard and come under existing regulations.
- bilekas 4y agoOkay that kind of clear it up, seems like a lapse of good practice then on Coinbase's if I'm understanding right.
- MagicMoonlight 4y agoPeople volunteer for a ponzi scheme too, that doesn’t mean it’s allowed