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SEC Issues Report Concluding DAO Tokens, a Digital Asset, Were Securities

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Re: SEC Issues Report Concluding DAO Tokens, a Digital Asset, Were Securities

#41

Post by brucephillips »

DennisP wrote: post #16
m777z wrote: post #11

I'm not terribly happy with the decision, though I can't say I'm surprised. I enjoy the drama of the Wild West that is Ethereum and the rest of the cryptocurrency ecosystem. Minimal regulation encourages innovation, while regulated markets can exist for people who want stability and certain guarantees to prevent fraud (or at least make it difficult). I wonder what would happen if financial regulations became more "op…

It might not change the overall ecosystem that much. Many companies doing ICOs are already locating themselves in friendlier jurisdictions, and making some effort to block U.S. contributors.

I imagine blocking U.S. contributors would significantly affect the ecosystem.

Re: SEC Issues Report Concluding DAO Tokens, a Digital Asset, Were Securities

#42

Post by cjbprime »

Cshelton wrote: post #13
kensai wrote: post #7

Look at the beating the market gets right now (as of 13 minutes after the news were posted). https://coinmarketcap.com

To be fair, the market was down around that much today already. The SEC article has had little to no effect as of yet. I also don't see it having much effect at all as all of those tokens are traded in secondary markets.

Is selling an unregistered security on secondary markets more legal, or just less likely to be noticed?

Re: SEC Issues Report Concluding DAO Tokens, a Digital Asset, Were Securities

#43

Post by Jabanga »

Cshelton wrote: post #17
m777z wrote: post #11

I'm not terribly happy with the decision, though I can't say I'm surprised. I enjoy the drama of the Wild West that is Ethereum and the rest of the cryptocurrency ecosystem. Minimal regulation encourages innovation, while regulated markets can exist for people who want stability and certain guarantees to prevent fraud (or at least make it difficult). I wonder what would happen if financial regulations became more "op…

The regulations put in place by the SEC are not to help companies, but to protect U.S. citizens from being scammed all the time. Sure, the wild west is fun, but if you are in an economic ecosystem where a large percentage is comprised of scammers/fraudulent companies, then it will be detrimental to long term success.

>but to protect U.S. citizens from being scammed all the time.

US citizens shouldn't be treated like children that need to protected from their own stupidity.

Re: SEC Issues Report Concluding DAO Tokens, a Digital Asset, Were Securities

#45

Post by armenarmen »

dmitrygr wrote: post #5

Good. This should help bring some sanity and accountability. they were both quite needed

There's no room for buyer beware? I mean c'mon. People participating in ICOs are still pretty sophisticated technically. Seems like we're regulating interactions between well informed consenting adults.

Re: SEC Issues Report Concluding DAO Tokens, a Digital Asset, Were Securities

#46

Post by isubkhankulov »

Jabanga wrote: post #43
Cshelton wrote: post #17

Earlier quoted context omitted.

The regulations put in place by the SEC are not to help companies, but to protect U.S. citizens from being scammed all the time. Sure, the wild west is fun, but if you are in an economic ecosystem where a large percentage is comprised of scammers/fraudulent companies, then it will be detrimental to long term success.

>but to protect U.S. citizens from being scammed all the time. US citizens shouldn't be treated like children that need to protected from their own stupidity.

history has proven this sentiment wrong

Re: SEC Issues Report Concluding DAO Tokens, a Digital Asset, Were Securities

#47

Post by DennisP »

brucephillips wrote: post #41
DennisP wrote: post #16

Earlier quoted context omitted.

It might not change the overall ecosystem that much. Many companies doing ICOs are already locating themselves in friendlier jurisdictions, and making some effort to block U.S. contributors.

I imagine blocking U.S. contributors would significantly affect the ecosystem.

They're already doing it. It's near impossible to do it effectively, if the contributor is comfortable interacting directly with smart contracts, but they're doing things like geoblocking their websites, making you click a box saying you're not in the U.S., etc.

Re: SEC Issues Report Concluding DAO Tokens, a Digital Asset, Were Securities

#48

Post by zazpowered »

brucephillips wrote: post #41
DennisP wrote: post #16

Earlier quoted context omitted.

It might not change the overall ecosystem that much. Many companies doing ICOs are already locating themselves in friendlier jurisdictions, and making some effort to block U.S. contributors.

I imagine blocking U.S. contributors would significantly affect the ecosystem.

Most ICOs already try to block US contributors but it's usually only based on IP which can easily be gamed

Re: SEC Issues Report Concluding DAO Tokens, a Digital Asset, Were Securities

#49

Post by vasilipupkin »

discombobulate wrote: post #44

Removed. I'm not from the US.

I am not sure how that exempts anyone from anything. If you, as a Swiss company, issue tokens that are securities according to country X and sell them to citizens of country X without going through a securities offering, you are violating that country's securities laws and the fact that you are based in Switzerland I don't think is relevant

Re: SEC Issues Report Concluding DAO Tokens, a Digital Asset, Were Securities

#50

Post by krschultz »

oneplane wrote: post #26
binarymax wrote: post #19

Earlier quoted context omitted.

This changes lots of things. You can't just open an DAO/ETH/BTC exchange, you need to be compliant with securities law and regulation. Those who operate as an exchange now but do not file the proper paperwork (which is expensive) should expect audits, fines, and shutdown.

No, they don't. That organisation only works in the USA, they can't do anything for 'the world'. Let me clarify this: Just because the US SEC wants something doesn't make it happen on the internet. They can do things with governments and companies, and that's about it. If some random hacker in Ukraine decides to use a ETH or BTC or smart contract or create a new coin, the SEC isn't going to be able to influence that.…

Good luck building the "economy of the future" without the US banking system. There is a reason banking sanctions are the US's most powerful non-military diplomatic tool.
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