Everything is an exchange a security and rules are for our safety, eat ya bugs, stay in doors and take your vax
U.S. SEC sees decentralized crypto platforms as exchanges
71–80 of 81 posts
Re: U.S. SEC sees decentralized crypto platforms as exchanges
#72Earlier quoted context omitted.
> Why is it OK to bail out the Silicon Valley bank but not this one? 1) Because SVB paid at least some money into the FDIC insurance fund. 2) Because SVB's deposits are mostly backed with still viable investments, and do not require an extended clawback process that will only ever get a certain fraction of the funds back.
Irrelevant. The whole point is to protect the blameless depositors, right? Then bail them out regardless of circumstances. Use taxpayer money to do it if necessary. Nobody cares whether the bank paid the insurance thing or not. What matters is avoiding financial calimity brought by the consequences of people's own choices.
> The whole point is to protect the blameless depositors, right?
No. Otherwise people who lose their belongings to theft would be reimbursed by the government.
> What matters is avoiding financial calimity brought by the consequences of people's own choices.
If FTX depositors can show that their losses mean that businesses will have to shut down, then they can probably twist the arm of politicians to make them whole with taxpayer funds. If they can't, then they're SOL like the rest of us.
Re: U.S. SEC sees decentralized crypto platforms as exchanges
#73Earlier quoted context omitted.
Comparing the security of visa transactions to crypto is laughable. The IRS literally had a bounty out for anyone that could trace monero. Meanwhile, seizing money from traditional bank accounts and tracking credit card transactions is an every day chore for the government.
For about a 63 cent stamp and a 5 cent security envelope you can send about $8000 or so of effectively untraceable hundred dollar bills with the USPS.
For 5 cents you can send any amount of monero anywhere around the world and have it settle in 25 minutes. The transaction is irreversible and obfuscated - sender, receiver and quantity.
Re: U.S. SEC sees decentralized crypto platforms as exchanges
#74Earlier quoted context omitted.
DeFi platforms do not deal with cash. Everything has to be on chain.
So how does one get a token on one of these platforms? I certainly won’t pay cash for a token!
You get a token by swapping other tokens you already have. If you don't have any tokens and don't wasn't to bup tokens for cash than you can enter give aways, or work for someone willing to pay you with tokens.
Re: U.S. SEC sees decentralized crypto platforms as exchanges
#75Earlier quoted context omitted.
It's funny you mention FTX, because FTX was exactly the opposite of a decentralized exchange. It was a centralized exchange that was unambiguously under the jurisdiction of the SEC. One of the major advantages of using a decentralized exchange is to avoid the risk that centralized exchanges like FTX expose you to, namely that it's a single point of failure that when collapses ends up taking a lot of people down with…
> With a decentralized exchange, your transactions happen within a matter of minutes and your only exposure to any potential failure is during those minutes. I thought many DXes operated by people effectively parking tokens in them for long periods of time so that others can come by and trade for those tokens (otherwise you'd need a way to sync up people who want to trade). The credits received for parked tokens can…
You are correct, but as I mentioned in my post, transactions happen within a matter of minutes on decentralized exchanges.
Re: U.S. SEC sees decentralized crypto platforms as exchanges
#76Earlier quoted context omitted.
For about a 63 cent stamp and a 5 cent security envelope you can send about $8000 or so of effectively untraceable hundred dollar bills with the USPS.
For 5 cents you can send any amount of monero anywhere around the world and have it settle in 25 minutes. The transaction is irreversible and obfuscated - sender, receiver and quantity.
Can you send it to the grocery store you're trying to leave with food sooner than 25 minutes?
That sounds like an implied criticism but I genuinely don't know the answer.
Re: U.S. SEC sees decentralized crypto platforms as exchanges
#77Meanwhile 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…
Not sure why the SEC would care if people from other countries are being scammed. As long as the local citizens are protected.
Re: U.S. SEC sees decentralized crypto platforms as exchanges
#78Earlier quoted context omitted.
Visa the company has over 20,000 employees. Presumably that network wouldn't function without them. Shouldn't the entire company's energy footprint be included in that 300kW?
VISA provides more services than transaction verification. Should the exchanges be included in the Ethereum energy footprint?
No.
Re: U.S. SEC sees decentralized crypto platforms as exchanges
#79Earlier quoted context omitted.
For 5 cents you can send any amount of monero anywhere around the world and have it settle in 25 minutes. The transaction is irreversible and obfuscated - sender, receiver and quantity.
Can you send it to the grocery store you're trying to leave with food sooner than 25 minutes? That sounds like an implied criticism but I genuinely don't know the answer.
Yeah every transaction has a one-time key you can give them. Settlement in 25 minutes is quicker than the 1–5 days they already deal with.
Re: U.S. SEC sees decentralized crypto platforms as exchanges
#80Let 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?
EthetDelta was exactly this, and they went after the guy that maintained the contract (plus in this case some ancillary order book matching servers).
You need fully decentralized right up to governance. Those aren't viewed as favorably by regulators.