Author Topic: Legal Council about BTS and No-action  (Read 17552 times)

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Offline R

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Well it looks like this WP did something right, because Bittrex announced they're no longer delisting Bitshares. What a roller-coaster this has been..
Still no update from Bittrex nor this worker for a while now

Offline Brekyrself

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Offline R

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Well it looks like this WP did something right, because Bittrex announced they're no longer delisting Bitshares. What a roller-coaster this has been..

Offline R

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Any update on this worker proposal? Did Bittrex never respond? Users on Telegram are claiming that Bittrex is emailing them about BTS being fully delisted, not just disabled?  :-\

Offline xeroc

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I dont think they will overlook fundamental components of a security such as the DAO's right to vote and receive dividends through ICO's such as Bits.Farm.
In contrast to DAO, the BTS token does not receive dividends. If it would, then it would be a security for sure - but it doesn't and hopefully never automatically receive dividends.
If someone wants to throw/drop money at someone, then that's fine, but doesn't make it a security IMHO - would ETH be a security because of the fork of ETC, or Bitcoin because BTC holders have also received BitcoinCash?

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Are you handling the matter Xeroc? Or is there somewhere/way I can track what is going on with respect to the legal issues underpinning BTS? I feel as if a third party
that isnt Paul Hastings LLP or yourself, with legal expertise, could aid in pursuing the best outcome.
The BitShares Blockchain Foundation handles this. It reports on a regular basis on bitshares.foundation and on steem.

You are free to get in contact with them, but I would highly advise you introduce yourself properly and underpin your claim that
an established company like PaulHastings isn't a good choice

Offline ME1995

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I dont think they will overlook fundamental components of a security such as the DAO's right to vote and receive dividends through ICO's such as Bits.Farm.

Are you handling the matter Xeroc? Or is there somewhere/way I can track what is going on with respect to the legal issues underpinning BTS? I feel as if a third party
that isnt Paul Hastings LLP or yourself, with legal expertise, could aid in pursuing the best outcome.



Offline xeroc

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The BBF has entered in an agreement with them and that means that they have responsabilities.
Still, thank you for your input and I will forward it to the respective parties to take it seriously.
The promised me to put this in their feed back to PaulHastings.
I expect the next spokesperson report to entail how this is answered.

In the future, it would be much more helful to send messages like those staight to the BitShares Blockchain
Foundation (info@bitshares.foundation) to not spread uncertainty.

Most people in here do understand the difference between DAO and BTS and the BBF will make sure that
the SEC understands them too. That said, if you ask me, the DAO ruling doesn't apply for BTS.

Offline ME1995

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I have a lot of issues with the advice and the remarks made from Mr. Hernard

'As to whether BTS is a security for U.S. securities law purposes, there appear to be very good arguments to make that a cryptocurrency with a substantial volume of coins in circulation and substantial daily volume of trades – indicia of having a true market value that is independent of the efforts of a group of employees or founders – is not a security.'

This is false. These arent the indicia of a security. Bitshares WILL be considered a security as a DAO or DAC gives parties voting rights - the same voting rights that got this proposal through. The
fact that he does not cover this is negligent on his part. There are further reasons why Bitshares WILL undeniably be considered a Security however I believe him skipping over this is the most
aggregious.

Spending BTS to send the no-action letter will be wasteful. The firm clearly have no idea how Bitshares or DAC's in general are run.

I could recommend an alternative law firm based in Australia - they have a lot of experience dealing with SEC issues regarding FinnTech and Cryptos generally.

@xeroc is there any way I can put forward a firm after Paul Hastings LLP contract expires? I don't think they have BTS' best interests in mind.

Offline litepresence

New Worker Proposal

(1)
With this worker, we (the bitshares blockchain foundation) would like to fund this project to seek legal clarity and presentation for BTS holders and regulators.

[]
Additionally to an opinion letter of a prestigious legal council,
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(2)
we also seek a non-action letter by the United States Securities and Exchange Commission (SEC), the prototype for many regulators in the world.



This should be two separate workers.

#1 seems many agree on urgent and important, wise

#2 we all have varying outlooks, SEC letter is a https://en.wikipedia.org/wiki/Rider_(legislation) to voting for legal council

maybe we should #1 and ask the experts if we should #2
« Last Edit: March 10, 2018, 09:59:59 pm by litepresence »

Offline blahblah7up

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I've read a number of these press releases by the Foundation, and the English language usage is so poor that it is almost impossible to understand what is being said.  It makes the Foundation look very unprofessional.  I'm not sure if it has always been the same author, but I've read three or four of these releases and each time my reading comprehension suffers greatly because of the poor command of the English language used by the author.  Please invest in a native English speaker to write the press releases!


Offline R

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Offline R

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@xeroc Do you think HERO and Hertz algorithm based assets would be treated any differently than traditional smartcoins such as bitUSD/bitCNY?

Cheers :)

Offline Brekyrself

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Glad to see this got voted in, please keep us updated on the milestones!

Offline xeroc

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I am not willing to discuss any "business" in here that is not about the SEC.

As for the "issue" with "approaching the lion" ... we are actually approaching the *LAWYERS* here and they assist us with a letter to approach the SEC.
If we cannot convince the lawyers, we don't need to bother with the SEC.
If we manage to write down a letter that is concise and accurate, the idea is to gauge probability of success before sending it in.
There will not be a letter sent to the SEC unless the lawyers and the BBF see very high chance of success.