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Nathan 2y ago

I have a more nuanced take on this. I think what the SEC & lawmakers are doing here is despicable.

They adamantly refused to pass regulations or laws that centralized or more centralized crypto projects could meet. They also didn’t pass regulations or laws requiring disclosure of information that would make total sense for those projects but not traditional securities.

I may think the projects are dumb, but if they aren’t a fraud or a scam, I think the market should figure that out & not force them out via old laws that make zero sense for the current times.

With that being said, this *is* why you want true decentralization. Because then they can’t stop it or regulate it out of existence even if they want to. nostr:note1njhs0r8d6g0u8q4ay6wl50pmaeyppzljqvedq4gcfcfkng97tacqgavnya

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Mike Brock 2y ago

What does it even mean to have a security that is beyond the reach of the law? Someone needs to explain this to me. Proving you own a security token means nothing in the real world. Literally nothing.

What's going to happen is you're going to end up in court trying to enforce your contractual right. And you're going to do that AFTER you claimed the whole thing was an extra-legal thing beyond the reach of the state!

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Nathan 2y ago

I’m not arguing it’s beyond the reach of the law. I’m arguing the current framework doesn’t work. As far as I can tell many crypto projects are a combination of a company and an open source project which precludes them from becoming registered securities. Do I think such combinations make sense? Personally, no. But I’m humble enough to admit I might be wrong. The only way to find out is to let them exist & the let the market sort it out. But that means they need a regime they can *actually* comply with which probably includes who or what entity can be held responsible in a court of law.

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Mike Brock 2y ago

There are two platforms (tZero and OpenFinance) that are registered with the SEC and the ICOs they've handled were registered securities with the SEC. So I'm struggling with how that's a thing, and how it's being alleged that it's impossible to do.

I still think tokenized securities are kind of dumb. But it's not true that the SEC doesn't allow them. They created registration rules for them in 2019.