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!
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.
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.
