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because there's no need to do that. Most cryptocurrencies meet the Howey test which is used to judge if something is a security. It needs to require investment,
by Barrin92 3y ago
because there's no need to do that. Most cryptocurrencies meet the Howey test which is used to judge if something is a security. It needs to require investment, be a common enterprise, and the expectation of profits.
Most cryptocurrencies are just token offering schemes that meet those criteria, a few like Bitcoin can make the case they're not securities. the crypto 'industry' wants a new asset class to avoid scrutiny, don't see much reason to give them one.
- tornato7 3y agoSure, regulate them as securities, but the problem is the SEC has made it nearly impossible to actually register a cryptocurrency as a security. https://policy.paradigm.xyz/writing/secs-path-to-registration-part-i https://policy.paradigm.xyz/writing/secs-path-to-registratio...
- martin8412 3y ago[flagged]
- Barrin92 3y agoDoesn't seem that way to me. all you need to do is to file an S-1. The issue is an entirely different one which is obvious when you look at the case studies in the second post. >"Paragon Coin Inc. (“Paragon”) was a Delaware company that raised $12 million from their 2017 ICO of “PRG Tokens” as part of a scheme to integrate blockchain technology to the cannabis industry." The "PRG Token" is just a share in the company. This is a security you should only be able to buy on a registered exchange. The business obviously failed because blockchain in the cannabis industry is utterly useless, the company went broke, and the actual plan off selling their worthless tokens on a random internet platform didn't work out. So the SEC literally just did its job. None of the companies mentioned on that site has anything resembling an actual business model, the point is merely to defraud public investors on opaque exchanges. In every single case the SEC almost certainly prevented harm being done to the public. This article makes an excellent case for maintaining the status quo.
- CPLX 3y agoIt’s trivial to register as a security it’s done countless times a year. The problem is that securities trading is regulated, and the coin base model of playing multiple roles itself is illegal
- max_ 3y agoWhat about the investment of record labels in Music contracts with musicians? If we are to look at the postulates of the Howey test it would probably pass them. I don't see them Trying to force record labels to register with the SEC.
- ivalm 3y agoBecause they are not passing those investments to retail? Everyone involved is either (1) accredited investor (2) involved in the running of the business.
- CPLX 3y agoThe contracts themselves are not traded directly. If they were they’d obviously be a security. Large record labels do of course have stock in their companies which is a security and is traded.
- Animats 3y agoYou can buy shares in music royalties.[1] Those are investments registered with the SEC, and the issuer is an SEC-registered broker/dealer with FINRA regulation and SIPC insurance. Your song portfolio may be a dud, but the company behind this has to account for the money they collect, and people will be held responsible if it goes missing. [1] https://www.songvest.com/how-it-works https://www.songvest.com/how-it-works
- junofan 3y agoThe page literally says they aren’t registered. The copy is made to look like they are.
- Animats 3y agoNo, they registered their offering. Here are all the documents filed with the SEC.[1] There's a prospectus, and annual reports. [1] https://www.sec.gov/edgar/search/#/q=SONGVEST https://www.sec.gov/edgar/search/#/q=SONGVEST
- max_ 3y ago>because there's no need to do that There is actually alot of need. The propositions that Crypto caters for would become worthless if we applied securities laws to them.
- ivalm 3y agoI think having broad disclosure about a thing you’re trying to collect money so that you can make more money is a good thing, even in crypto.