Author Topic: Why are asset-pegged tokens products not securities?  (Read 1080 times)

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Offline Rune

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In the long run the answer to this question will be different in every jurisdiction, and probably quite arbitrary. I think the best choice is to simply hope for the best and avoid doing business in jurisdictions that decide they want to try regulating blockchain-based cash. IMO regulating bitassets as securities is the same as just banning them, since the full AML bs destroys the user experience as money - and slabbing stupid regulation on cryptocurrency will probably be a convient and often used method by regulators to de facto ban it. At the current point in time, while regulators don't even know what smart contracts are, I think it's best to just move as fast as possible and try spread blockchains, pegged assets and whatever other profitable smart contract you can create, as far as possible.

Offline sittingduck

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It's value is not dependent on the effort of others therefore not a security


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Offline starspirit

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I just want to be confident I understand where the ("grey") lines are so that I can avoid crossing them in the designs I'm building.

For example, if the buyer of a token is not able to do anything with it apart from buy or sell it, is that necessarily a security? What makes an MPA a product rather than a security? Does it require non-financial utility?