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by coolestguy 1072 days ago
>Can anyone summarize in layperson's terms any standards that these securities must meet?

No, not even the SEC & that's the cause of major court cases currently.

In normal security offerings, there's disclosures coming from the issuing company about financials/profitability etc but btc/eth are peer to peer networks so there's no-one in the middle to do these things & it is very different to normal securities.
1 comments
FireBeyond 1072 days ago
> No, not even the SEC & that's the cause of major court cases currently.

That's the spin of all the PR the crypto exchanges have put out.

However, when it's time to put their money where their mouths are, they don't mention that there's no specific standards (because there is - the Howey Test).

Coinbase, for example, has been very loud about this. "We're desperately asking the SEC to help us do this right and they won't!"

Except their lawsuit says that they absolutely know how to "do this right", but...

> for many tokens, registering is not possible due to effort involved, or not economically viable.

i.e. Coinbase doesn't like the cost of having to register securities for the shitcoin du jour - there's no money to be made.

But the SEC isn't obligated to make a profitable business model for Coinbase.

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simple-thoughts 1072 days ago
SEC just a few days ago lost most of its case against XRP where it’s strict definition of the Howey test was decided by the judge to be incorrect regarding crypto tokens. The judge did rule for the SEC regarding investment contracts concerning tokens. Most likely the SEC will lose the case against coinbase as well for similar reasons.

Just because the SEC says something doesn’t mean it’s true.

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FireBeyond 1071 days ago
The Howey test isn't an SEC construct, it's that of the Supreme Court.

As it is, the SEC has been implementing the Howey test as a result of that precedent.

Now, you can certainly argue that the Howey test is flawed or incomplete or... but that's separate to arguing that the SEC is misapplying the test.

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brewdad 1071 days ago
Just because a judge says something doesn’t make it true either. I’m sure the case will be appealed and, until a final verdict is given, nothing has been settled.
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