4 ms·

Why should crypto currencies not be considered a security asset?

toomim 4y ago
Because they don't satisfy the Howey Test, which legally defines a security. https://kurtalaw.medium.com/the-howey-test-the-supreme-court-ruling-that-defined-investments-cdb0b29b8160 https://kurtalaw.medium.com/the-howey-test-the-supreme-court...
- illiarian 4y ago
  The way the absolute vast majority of this cesspool is used satisfies all the criteria.
- ericd 4y ago
  I thought the status was that BTC was considered a commodity, and basically all the rest were considered securities?
  - michaelsbradley 4y ago
    The chairman of the Commodities and Futures Trading Commission, Rostin Behnam, told the Senate Agriculture Committee on 09 March 2023 that Ethereum, the second-largest cryptocurrency next to Bitcoin, is a commodity. "We would not have allowed the Ether futures product to be listed on a CFTC exchange if we did not feel strongly that it was a commodity asset," he elaborated, stating that his agency has "serious legal defences" to support their case. 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...
    - ericd 4y ago
      Ah, good to know, thanks!
      - michaelsbradley 4y ago
        Well, embarrassingly I made a typo, it should have been 08 March 2023, but no matter.
  - lowkey 4y ago
    That is correct. Gary Gensler, head of the SEC, had publicly stated that he considers Bitcoin a commodity, not a security.
    - toomim 4y ago
      But it is not correct that "all the rest" are considered securities. Also, the SEC does not determine what is and is not a security. That is determined in court. Gary Gensler can give guidance on what the SEC will take to court, but he is not the final word on what is a security.
      - lowkey 4y ago
        All fair points.
mike_d 4y ago
Why shouldn't they just be considered currencies? It is something a group of people agree have value and they are willing to exchange with each other for goods and services. The SEC does not care if you bring back Euros from vacation and they are worth more money when you find them in your backpack a year later and exchange them.
- kmbfjr 4y ago
  Because it isn’t a currency. Get back to me when we can agree that “I’m buying if you’re flying”. You might be able to simulate a currency, but that does not make it so.

Because they don't satisfy the Howey Test, which legally defines a security. https://kurtalaw.medium.com/the-howey-test-the-supreme-court-ruling-that-defined-investments-cdb0b29b8160 https://kurtalaw.medium.com/the-howey-test-the-supreme-court...

illiarian 4y ago
The way the absolute vast majority of this cesspool is used satisfies all the criteria.
ericd 4y ago
I thought the status was that BTC was considered a commodity, and basically all the rest were considered securities?
- michaelsbradley 4y ago
  The chairman of the Commodities and Futures Trading Commission, Rostin Behnam, told the Senate Agriculture Committee on 09 March 2023 that Ethereum, the second-largest cryptocurrency next to Bitcoin, is a commodity. "We would not have allowed the Ether futures product to be listed on a CFTC exchange if we did not feel strongly that it was a commodity asset," he elaborated, stating that his agency has "serious legal defences" to support their case. 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...
  - ericd 4y ago
    Ah, good to know, thanks!
    - michaelsbradley 4y ago
      Well, embarrassingly I made a typo, it should have been 08 March 2023, but no matter.
- lowkey 4y ago
  That is correct. Gary Gensler, head of the SEC, had publicly stated that he considers Bitcoin a commodity, not a security.
  - toomim 4y ago
    But it is not correct that "all the rest" are considered securities. Also, the SEC does not determine what is and is not a security. That is determined in court. Gary Gensler can give guidance on what the SEC will take to court, but he is not the final word on what is a security.
    - lowkey 4y ago
      All fair points.

mike_d 4y ago

Why shouldn't they just be considered currencies? It is something a group of people agree have value and they are willing to exchange with each other for goods and services. The SEC does not care if you bring back Euros from vacation and they are worth more money when you find them in your backpack a year later and exchange them.

kmbfjr 4y ago
Because it isn’t a currency. Get back to me when we can agree that “I’m buying if you’re flying”. You might be able to simulate a currency, but that does not make it so.