Live data from Hacker News

Robinhood Crypto Gets Wells Notice from US SEC

reuters.com

61–65 of 65 posts

Re: Robinhood Crypto Gets Wells Notice from US SEC

#61
post #26

Earlier quoted context omitted.

The only reasonable standard the crypto true believers would accept from the US government is that cryptocurrency tokens and derivatives are 100% unregulated and nontaxable by any current or future statute.

That's a nice ad hominem attack you've made there, but it isn't actually unreasonable to argue that Bitcoin and certain other currencies like it are not securities. Heck, even the SEC has said as much. It's even more reasonable to argue that things like NFTs are more like digital baseball cards than securities.

The thing that sold many people on the idea of crypto was that in their minds, government couldn't regulate it or use a central bank to impact its value. I'm not sure why they thought this (maybe "because computers") but one way (through securities or commodities laws) or the other (new legislation), they're going to regulate it.

Re: Robinhood Crypto Gets Wells Notice from US SEC

#62
post #52

Earlier quoted context omitted.

> CFTC seems to think it would be perfectly competent to handle the situation too The way these businesses are run, it probably does too. A good amount of effort in finance goes into avoiding unneeded regulatory duplication. But if you’re a you’re a bank you get both the FDIC and SEC, a public drug manufacturer the SEC and FDA; if you’re selling crypto through your brokerage app, the SEC and CFTC.

Perhaps at the level of exchanges, sure, but for each individual token, it can't be both a commodity and a security at the same time, and the CFTC and SEC keep stepping on each other's toes.

> it can't be both a commodity and a security at the same time

Why not? Mixed swaps are dual regulated, for instance [1].

[1] https://katten.com/CFTC-SEC-Finalize-Swap-Product-Definition...

Re: Robinhood Crypto Gets Wells Notice from US SEC

#63
post #9

Earlier quoted context omitted.

Ok, but these are clearly not commodities.

From the CFTC: > Bitcoin is considered a commodity and is the underlying asset in bitcoin futures contracts… Bitcoin futures contracts — like other commodity futures contracts such as corn futures, market index futures, or gold futures — are regulated by the CFTC and must trade on CFTC-regulated exchanges. https://www.cftc.gov/LearnAndProtect/AdvisoriesAndArticles/B...

Thanks for the reference. Between this, megadal's sibling-comment Wikipedia quote, and a quick search of "economic good", I believe I was mistaken.

Re: Robinhood Crypto Gets Wells Notice from US SEC

#65

Earlier quoted context omitted.

I doubt the SEC has a strong case here. I wouldn’t worry about anything for now

What makes you think this?

RH has been working hard to get regulatory approval, similar to Coinbase. I don’t think anything drastic can be done if they are found to be in the wrong, considering they’ve been proactive with getting regulation in place
Post reply on HN