“I don’t give a damn what is a security, and what isn’t. I trade securities all the time. There’s nothing illegal about being a security as long as securities laws are followed. Please feel free to call all tokens securities if you want. It won’t bother me in the least, it doesn’t change the long-term value proposition, and I welcome a registered exchange and rock-solid, “tried and true” U.S. securities regulations to help shepherd in the next wave of blockchain adoption…… BUT…… if you (the SEC) are hellbent on calling every digital asset a security and regulating the whole industry, then for the love of god, find a way to make it cheaper and easier for exchanges to get licenses in order to trade them, and for token issuers to be able to issue them, and for truly decentralized projects to be able to comply. The everyday people in this industry do not need to continue to suffer simply because Congress hasn’t issued new laws yet, and the SEC is unwilling to adapt its 80-year old laws to new technology.
“We believe that cryptocurrencies are fundamentally novel and, while some may be securities, they fundamentally do not fit within current US securities regulatory frameworks. There are effectively two paths regulators can take to bring clarity to digital assets on this topic:1) create a new, bespoke regime starting from first principles (which is the approach the EU has taken with its Markets in Crypto Assets (MiCA) regulation), or2) fit digital assets into existing regulatory frameworks (the approach the United Kingdom has been taking).The first approach is certainly valid if done deliberately in a way that balances capital formation and promoting innovation with consumer protection and orderly markets. The latter can also be effective, but requires the production of significant interpretive guidance so existing regulated entities understand how to apply old rules to new technologies, asset classes, or processes. The SEC has taken the latter approach but has neglected to produce substantive guidance on how entities like broker/dealers, exchanges, transfer agents, or others could actually custody, list, trade, or use digital assets.”
And That’s Our Two Satoshis!
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