U.S. SEC sees decentralized crypto platforms as exchanges • Hacker News Board

Re: U.S. SEC sees decentralized crypto platforms as exchanges

#11

Post by robcohen » Fri, Apr 14, 2023, 8:19 PM UTC

jjtheblunt wrote: post #5

monero-xmr wrote: post #2

Meanwhile Hong Kong is rolling out the the red carpet https://www.wsj.com/articles/hong-kong-banks-are-netting-cry... The crypto industry is extremely adept at moving across borders, and as power politics between nations dictate different priorities, crypto will make its home base where ever the doors open. Right now China and Russia are in a West vs. East struggle, and anything they can do to reduce the power of the…

Since Russia has lots of energy, maybe they can use it to settle transactions? Meanwhile Visa keeps on clearing incomparably more (by “several orders of magnitude”) encrypted transactions per second globally for miniscule energy?

I’d be very surprised if Visa can clear transactions with less energy than Ethereum Proof of Stake requires.

https://ethereum.org/en/energy-consumption/

The energy argument is correct for proof of work, not proof of stake.

Re: U.S. SEC sees decentralized crypto platforms as exchanges

#12

Post by longitudinal93 » Fri, Apr 14, 2023, 8:20 PM UTC

jjtheblunt wrote: post #5

monero-xmr wrote: post #2

Meanwhile Hong Kong is rolling out the the red carpet https://www.wsj.com/articles/hong-kong-banks-are-netting-cry... The crypto industry is extremely adept at moving across borders, and as power politics between nations dictate different priorities, crypto will make its home base where ever the doors open. Right now China and Russia are in a West vs. East struggle, and anything they can do to reduce the power of the…

Since Russia has lots of energy, maybe they can use it to settle transactions? Meanwhile Visa keeps on clearing incomparably more (by “several orders of magnitude”) encrypted transactions per second globally for miniscule energy?

Nice and private, those transactions

Re: U.S. SEC sees decentralized crypto platforms as exchanges

#13

Post by HPsquared » Fri, Apr 14, 2023, 8:22 PM UTC

I wonder what side effects this decision will bring.

Re: U.S. SEC sees decentralized crypto platforms as exchanges

#14

Post by bobthepanda » Fri, Apr 14, 2023, 8:25 PM UTC

monero-xmr wrote: post #2

Meanwhile Hong Kong is rolling out the the red carpet https://www.wsj.com/articles/hong-kong-banks-are-netting-cry... The crypto industry is extremely adept at moving across borders, and as power politics between nations dictate different priorities, crypto will make its home base where ever the doors open. Right now China and Russia are in a West vs. East struggle, and anything they can do to reduce the power of the…

Hong Kong may not be a great place to invest long term given that China has a far more precarious legal system and is willing to override Hong Kong’s on a whim.

Re: U.S. SEC sees decentralized crypto platforms as exchanges

#15

Post by 3dfan » Fri, Apr 14, 2023, 8:26 PM UTC

Can't decentralized exchanges be completely anonymous?

If a user sends some ETH to an adress and on some Bitcoin address a balance shows up - how would the SEC want to regulate that?

Let alone exchanges that are just a contract on Ethereum and only exchange tokens on the Etherum blockchain. What is the SEC going to do about those?

And what would happen if some country in the world tokenizes their property. Say a certain token on the Ethereum blockchain means ownership in a company in Sweden. What if a US citizen buys such a token by sending ETH to a smart contract?

So many questions.

Shouldn't these have been kinda answered already in regards to international exchanges? What if a US citizen buys stock on the Euronext Paris, the French stock exchange? Would the Euronext Paris have to be registered with the SEC? What if they are not? Are they committing a crime in the eyes of the SEC?

Re: U.S. SEC sees decentralized crypto platforms as exchanges

#16

Post by thisgoesnowhere » Fri, Apr 14, 2023, 8:26 PM UTC

robcohen wrote: post #11

jjtheblunt wrote: post #5

Earlier quoted context omitted.

Since Russia has lots of energy, maybe they can use it to settle transactions? Meanwhile Visa keeps on clearing incomparably more (by “several orders of magnitude”) encrypted transactions per second globally for miniscule energy?

I’d be very surprised if Visa can clear transactions with less energy than Ethereum Proof of Stake requires. https://ethereum.org/en/energy-consumption/ The energy argument is correct for proof of work, not proof of stake.

Bit odd to see the comparison of ethereum to YouTube and netflix. What is that supposed to show?

Re: U.S. SEC sees decentralized crypto platforms as exchanges

#17

Post by bobthepanda » Fri, Apr 14, 2023, 8:26 PM UTC

cherioo wrote: post #7

VWWHFSfQ wrote: post #3

Earlier quoted context omitted.

Hasn't the CCP been pretty adversarial to cryptocurrency?

CCP doesn’t want crypto due to risk from capital flight and monetary control in China. Hong Kong has no such risks given its freer capital control. The only thing non-free that CCP care is speech.

Well, HK is also a conduit of money entering and leaving China, so if people start using crypto for that then China will crack down, the same way they cracked down on the Macanese money-laundering via casinos.

Re: U.S. SEC sees decentralized crypto platforms as exchanges

#18

Post by nostrademons » Fri, Apr 14, 2023, 8:28 PM UTC

bobthepanda wrote: post #14

monero-xmr wrote: post #2

Meanwhile Hong Kong is rolling out the the red carpet https://www.wsj.com/articles/hong-kong-banks-are-netting-cry... The crypto industry is extremely adept at moving across borders, and as power politics between nations dictate different priorities, crypto will make its home base where ever the doors open. Right now China and Russia are in a West vs. East struggle, and anything they can do to reduce the power of the…

Hong Kong may not be a great place to invest long term given that China has a far more precarious legal system and is willing to override Hong Kong’s on a whim.

For a technology that seeks to replace the legal & financial system, this is the perfect place to invest. It's like how Uber couldn't have gotten started anywhere other than SF, because the transportation system there is so bad that people will hop into cars with strangers instead. You don't found a startup in places where your competition is strong, you found it in places where it's nonexistent.

Re: U.S. SEC sees decentralized crypto platforms as exchanges

#19

Post by charcircuit » Fri, Apr 14, 2023, 8:29 PM UTC

What do they mean?

Is Ethereum itself an exchange or would a website like https://app.1inch.io be considered the exchange? Or would 1inch itself be the exchange and holders of 1INCH be responsible for it?

It makes little sense.

Re: U.S. SEC sees decentralized crypto platforms as exchanges

#20

Post by LapsangGuzzler » Fri, Apr 14, 2023, 8:29 PM UTC

monero-xmr wrote: post #2

Meanwhile Hong Kong is rolling out the the red carpet https://www.wsj.com/articles/hong-kong-banks-are-netting-cry... The crypto industry is extremely adept at moving across borders, and as power politics between nations dictate different priorities, crypto will make its home base where ever the doors open. Right now China and Russia are in a West vs. East struggle, and anything they can do to reduce the power of the…

After the collapse of Silvergate and Signature, I say “let them have it”.

The crypto industry may be adept at moving across borders, but so are seasoned criminals. That shouldn’t automatically qualify them to operate with impunity. Millions of people lost savings in the wake of FTX, and we’re all just supposed to pretend that it was some singular, isolated incident?

Their name was on an NBA arena, they spent millions on celebrity endorsements and ads, and were touted among what many consider to be one of the top tier venture firms in the world. The SEC had every right do this.