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Question: is it even possible to register as a security? If you do, what follows? So if SOL for example were to register somewhere, what would they need to do,

Question: is it even possible to register as a security? If you do, what follows? So if SOL for example were to register somewhere, what would they need to do, and what would I need to do to buy it?

SpicyLemonZest 3y ago
There’s no fundamental reason it would be impossible. Solana Labs would need to file a registration statement with the SEC (https://www.sec.gov/education/smallbusiness/goingpublic/registrationstatement https://www.sec.gov/education/smallbusiness/goingpublic/regi...) including among other things a description of its business practices and audited financial statements. Once they did that, you would be able to buy and sell it at any registered exchange who’s willing to list it. Coinbase, maybe, if they’re willing to accept the costs and regulations involved.
- arctek 3y ago
  Except that it would exclude a raft of non-US citizens then, i.e. any sanctioned country, Coinbase would also need to become registered as an ATS and their current settlement and clearing processes would need to be re-engineered from the ground up. For all intents and purposes you cannot register a cryptocurrency with the SEC and then go on trading it anywhere publicly - it doesn't exist. There's only been a few projects that managed to avoid this: Enigma for example moved to a decentralized network and changed their coin over (so it was magically no longer a security according to the SEC) and the SEC just fined them and made them issue refunds for the project raise.
  - JumpCrisscross 3y ago
    > it would exclude a raft of non-US citizens then, i.e. any sanctioned country This lays bare the problem with the status quo. Wanting to profit off sanctions busting isn’t a sympathetic pitch.
    - dbmikus 3y ago
      In some cases, I find it sympathetic. For example, I don't think it's a clear cut moral resolution that people should exclude Iran from buying US goods and services, but they are on the sanctioned list. I supported Obama dropping sanctions on Iran back when he was president. There's a difference between what is legal and what is moral. For what is moral, there are hardly any absolute answers.
      - JumpCrisscross 3y ago
        > I don't think it's a clear cut moral resolution that people should exclude Iran from buying US goods and services, but they are on the sanctioned list Sure. But crypto is an inefficient way to express that policy preference. And it's difficult to comport claims of altruistic intent with crypto's financial incentives.
marcell 3y ago
Registering a security means basically an IPO. The burden is very high and is out of reach for crypto startups that have little revenue and under $1 million in funding.
- smabie 3y ago
  There's a lot of non equity securities?

Question: is it even possible to register as a security? If you do, what follows? So if SOL for example were to register somewhere, what would they need to do, and what would I need to do to buy it?

SpicyLemonZest 3y ago

There’s no fundamental reason it would be impossible. Solana Labs would need to file a registration statement with the SEC (https://www.sec.gov/education/smallbusiness/goingpublic/registrationstatement https://www.sec.gov/education/smallbusiness/goingpublic/regi...) including among other things a description of its business practices and audited financial statements. Once they did that, you would be able to buy and sell it at any registered exchange who’s willing to list it. Coinbase, maybe, if they’re willing to accept the costs and regulations involved.

arctek 3y ago
Except that it would exclude a raft of non-US citizens then, i.e. any sanctioned country, Coinbase would also need to become registered as an ATS and their current settlement and clearing processes would need to be re-engineered from the ground up. For all intents and purposes you cannot register a cryptocurrency with the SEC and then go on trading it anywhere publicly - it doesn't exist. There's only been a few projects that managed to avoid this: Enigma for example moved to a decentralized network and changed their coin over (so it was magically no longer a security according to the SEC) and the SEC just fined them and made them issue refunds for the project raise.
- JumpCrisscross 3y ago
  > it would exclude a raft of non-US citizens then, i.e. any sanctioned country This lays bare the problem with the status quo. Wanting to profit off sanctions busting isn’t a sympathetic pitch.
  - dbmikus 3y ago
    In some cases, I find it sympathetic. For example, I don't think it's a clear cut moral resolution that people should exclude Iran from buying US goods and services, but they are on the sanctioned list. I supported Obama dropping sanctions on Iran back when he was president. There's a difference between what is legal and what is moral. For what is moral, there are hardly any absolute answers.
    - JumpCrisscross 3y ago
      > I don't think it's a clear cut moral resolution that people should exclude Iran from buying US goods and services, but they are on the sanctioned list Sure. But crypto is an inefficient way to express that policy preference. And it's difficult to comport claims of altruistic intent with crypto's financial incentives.

marcell 3y ago

Registering a security means basically an IPO. The burden is very high and is out of reach for crypto startups that have little revenue and under $1 million in funding.

smabie 3y ago
There's a lot of non equity securities?