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No, it has a mandate to determine whether an investment is legal or not. Have you considered it may be impossible to fulfill because by their very nature these
by Nursie 3y ago
No, it has a mandate to determine whether an investment is legal or not.
Have you considered it may be impossible to fulfill because by their very nature these things cannot pass the tests to be legal?
> why doesn't anyone do so instead of battling the SEC in court?
Because none of them meet the bar of legality. Because they do not meet the most basic requirements of consumer protection, transparency, fair market trading. It's not the SEC making requirements for crypto so stringent, it's crypto's complete failure to fulfill the necessary criteria for a registered security.
As others have said - the SEC aren't going to make it easy for me to register my ponzi scheme either, should I blame them when I get shut down for running it anyway? Cry about how they're making it difficult to figure out how to follow their guidelines? Whine that ponzi schemes are not being allowed a simple way to compliance? Or should I maybe re-evaluate what I'm trying to do?
- olalonde 3y agoWe're in agreement here. The SEC is indirectly making crypto tokens illegal by making it impossible to comply with securities registration requirements. When the SEC says "you have to register", what they really mean is "we think crypto tokens should be illegal". > register my ponzi scheme either, should I blame them when I get shut down for running it anyway In my opinion, if the scheme was transparent and no deception was involved, I do believe consenting adults should be allowed to transact. I am not big on the idea of protecting people from themselves, when no deception is involved. Regardless, ponzi schemes are explicitly illegal. If you think that all crypto tokens should be illegal as well, a law should be passed. Making them implicitly illegal through bureaucracy and at the whims of bureaucrats is not an ideal state of things in a democratic society.
- Nursie 3y agoThere are laws, the SEC can’t make things illegal and to enforce the laws it has to take things to court. The laws don’t explicitly say “cryptocurrency is illegal”, instead they are effectively duck-typed, which is good because it stops “oh but my thing is different, this time we’re using bottle-caps”.