Here is the answer to beating the SEC, and essentially all of government's regulations, at least in the US.
There are two categories of living in the USA: Public, Private. Government has authority over public living, but it has very little authority over private living. The short answer is, live your life in private rather than public.
What does that mean for crypto? Do your crypto exchanging in private, so nobody knows the details about why you are transacting. Make a public statement for anyone who asks that such transactions have been done privately.
The fact is that if you don't use any public exchanges, the details behind any crypto operation
ARE extremely private already. It takes the CIA and the NSA a bit of work to find out who is even behind transactions, provided that you don't tell them, and provided that you use a VPN to mask your Internet IP address.
If you want to go the rest of the way in privatizing your crypto transactions, join a private crypto club (is there such a thing?), or make a simple private club between yourself and whoever you are transacting with. Have the club in writing, so that you can show that it is private if the SEC asks about it. Use
Private
Membership
Association (PMA) transacting.
What I mean is this. If your buddy comes over to your house, and you trade a bunch of money in your living room, it's a private transaction. Same with crypto. But make a formal agreement (PMA) that this is between the two of you, so that if the SEC pokes their nose in, they don't have the authority. It was private.
There are two parts to PMA making and operating: the formal PMA membership, and what to do to handle things if the SEC won't back down when you show them the PMA paperwork. Both parts can be found at the
ProAdvocate Group here
https://www.proadvocate.org/. The basic guy behind this was Karl Dahlstrom (deceased) -
https://www.youtube.com/watch?v=13OHj_2TOOA. But a general search on PMAs will give you a lot of info about how they are in use all over the place right now -
https://duckduckgo.com/?t=lm&q=private+membership+association&ia=web.Two thoughts regarding crypto and the PMA:
1. PMAs have no limit to the number of them that can be made. The only thing is to show something in the particular PMA in question that it is different than any other PMA. The way to do this with your crypto PMA is to use the hash of the transaction as the identification number of your PMA. Make a new PMA every time you transact. Write the PMA membership details right in the client, and reference it all in the transaction memo.
2. If the SEC drags you into court, never use an attorney. Why not? Because doing so drags you into the public, the exact thing that you don't want. See
https://www.youarelaw.org/Download/CorpusJurisSecundum-AttorneyClient.pdf. ProAdvocate Group explains about not using an attorney. Rather, use a paralegal that you have contracted with to be your co-counsel. Much of the time paralegals know more law than attorneys, because attorneys use them to do their case research legwork.
