Earlier quoted context omitted.
It is not obvious a priori how regulators will treat tokens or which ones will be permissible.
In general if you're thinking of doing something in a gray area of federal law or regulations then you can write a formal letter to the competent regulatory agency and request an opinion. But you have to be extremely specific and pose your questions in ways that can be answered with a clear yes or no; you can't expect a useful response to a vague request for clarifications or definitions. If the agency does give you…
US SEC sues Coinbase, one day after suing Binance
251–260 of 443 posts
Re: US SEC sues Coinbase, one day after suing Binance
#252Earlier quoted context omitted.
The drugs I've bought with cryptocurrency have been cheaper and of better quality than the drugs I've bought with dollars, by a wide margin. So there's that. The marketing you're talking about is for the investors. By the nature of the product, the users have powerful adversaries and are probably operating in secret. You can't expect their use cases to show up in the marketing, that would defeat the purpose. Sure, yo…
> in a world where they're more difficult to coordinate against due to a underdeveloped crypto. This is the part I don't understand. How does cryptocurrency make it easier to coordinate people than all the other tools we have to coordinate people?
This happened with thepiratebay and DNS. It happened with wikileaks and paypal. It happened at the ISP level with Signal during recent unrest in Iran. It happens with the US banking system anytime somebody manages to get somebody else on one of the OFAC lists. It happens to would-be radicals on twitter all the time.
On the other hand, systems that don't involve implicit custodial trust don't have these problems, which is why journalists in China occasionally publish on Ethereum, because the Chinese censors don't have a single-point-of-failure to attack.
I don't think that currencies are an especially interesting application (although the wikileaks case is an example where they are relevant to group coordination). It's just that the currencies are what gets hyped because they're relevant to the investment side--without them, there's less money to build the other stuff.
Another example which I expect to emerge, but which I don't think has been developed yet, would be the use of NFT's in a successor system. If the leader of a movement gets apprehended or incapacitated and they don't check in after a certain number of blocks, then a contract moves the leadership token to their successor. This denotes the successor's signing keys as authoritative, and the leader's (presumably compromised) keys as deprecated. If you keep signatures on-chain you can also tell which ones were registered at a time when they were valid.
You couldn't do this on AWS, somebody would just compel AWS to remove the data they don't like, you need something like a blockchain. But it only works if enough people are running nodes to make attacking all of the node operators infeasible. For that you need to provide incentives, and now we're back to cryptocurrency.
For me it comes down to whether you think dissent is more important than preventing all of the shady business that goes on in secret online. I do, so I'm pro-crypto. The currency bit is an ugly necessity which I hope we can find a way to get rid of.
Re: US SEC sues Coinbase, one day after suing Binance
#253Earlier quoted context omitted.
There’s no fundamental reason it would be impossible. Solana Labs would need to file a registration statement with the SEC ( https://www.sec.gov/education/smallbusiness/goingpublic/regi... ) including among other things a description of its business practices and audited financial statements. Once they did that, you would be able to buy and sell it at any registered exchange who’s willing to list it. Coinbase, maybe,…
Except that it would exclude a raft of non-US citizens then, i.e. any sanctioned country, Coinbase would also need to become registered as an ATS and their current settlement and clearing processes would need to be re-engineered from the ground up. For all intents and purposes you cannot register a cryptocurrency with the SEC and then go on trading it anywhere publicly - it doesn't exist. There's only been a few proj…
This lays bare the problem with the status quo. Wanting to profit off sanctions busting isn’t a sympathetic pitch.
Re: US SEC sues Coinbase, one day after suing Binance
#254Crypto companies think they don't trade securities which is clearly wrong and contradicted by their own advertising. People buy crypto without a real use for crypto because they think they can sell it for more later. Everyone under the sun knows this. It's obviously a security and failing to register should be met by SEC cases like this one.
That's not what makes something a security -- many things fit into that template that aren't securities: collectibles, commodities, etc.
Re: US SEC sues Coinbase, one day after suing Binance
#255The specific crypto tokens they are classifying as securities are: SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO. Of course they say "not limited to" to hedge their bets, but those are the ones they specifically mention. This is the exact "regulatory clarity" Coinbase has been asking for, but the SEC prefers to sit on their hands for years (while investors are "harmed") and then sue, rath…
Nononononononononononono we don't get to play that game. The SEC has perfectly clearly communicated for years its regulatory clarity: most crypto-currencies are obviously securities. When Coinbase and others say "regulatory clarity", they want the answer to be some framework for how they can continue to sell crypto to everyone/anyone. But that's not the policy! Most of these coins are some combination of ponzi scheme…
Re: US SEC sues Coinbase, one day after suing Binance
#256Grace period of unregulated crypto is over. Brace yourself, SEC is coming!
The SEC issues fines. To them it's taking a cut, to Binance etc, it's operating expenses. These "enforcements" are more like protection money paid to gangsters. The SEC could have created clarity a decade ago. It's not in their interest to do so, plain and simple. They are incentivised financially, to persist in creating a lack of clarity, and then randomly "enforcing" inconsistently to extract multi-millions off of…
Re: US SEC sues Coinbase, one day after suing Binance
#257Earlier quoted context omitted.
Interesting, maybe you should let Gensler know that the law is much more obvious than he appears to realize [0] [0]: https://youtu.be/VhA1dZXeao0?t=58
Crypto people constantly point to this video as some kind of evidence that the SEC is clueless. Maybe it just doesn't make sense for them to give clear answers in that kind of hearings,or answers related to specific crypto token. Just normal for government officials to cover their own asses primarily and giving specific guidance related to a specific issue at a hearing doesn't just serve them well.
Re: US SEC sues Coinbase, one day after suing Binance
#258Earlier quoted context omitted.
Gambling happens in real world markets as well, but that doesn't mean that real world markets are casinos. Beaniebabies were effectively regulated and taxed like commodities. Commodities do not require a real-world use. All they are are tradable non-currency things which can result in capital gains. The speculative (HODL!!) cryptocurrencies should probably be treated like commodities, and regulated as such by the CFT…
IIRC beanie babies and similar are classified as "collectibles" and have different (worse) tax treatment than commodities.
IIRC, the IRS and CFTC have already issued rules to treat NFTs as collectibles.
Re: US SEC sues Coinbase, one day after suing Binance
#259Re: US SEC sues Coinbase, one day after suing Binance
#260Crypto companies think they don't trade securities which is clearly wrong and contradicted by their own advertising. People buy crypto without a real use for crypto because they think they can sell it for more later. Everyone under the sun knows this. It's obviously a security and failing to register should be met by SEC cases like this one.