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Author Topic: Is Uncle Gary leaving the SEC?  (Read 224 times)
zasad@ (OP)
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May 03, 2024, 11:07:59 AM
Last edit: May 03, 2024, 11:50:21 AM by zasad@
 #21

@zasad@. The victory in the case on Ripple is the judges ruling that have declared that the tokens by themselves are not securities. This might open a new roadmap for development teams on how to issue tokens without making it a security. I speculate that proof of work will become useful again in this new distribution method where projects will use proof of work for distribution then make the transformation to proof of stake. It might be similar to Ethereum without the premine.
Then let's come to some agreement on this issue.
I think that even before the court’s decision it was clear that if a token was not sold to investors, then it cannot be a security.
This is what the famous Howey test says.

The fact "that tokens themselves are not securities" helps US-based crypto exchanges avoid accusations of securities trading.

Ripple still has a bunch of other legal charges, and most likely they will pay a fine. Ripple was also engaged in active marketing and market manipulation (like other projects).
https://bitcointalk.org/index.php?topic=5487767

A way to avoid problems with SEC
https://bitcointalk.org/index.php?topic=5480233
Is this a secret? This has been known to everyone for a long time, but with such requirements it was impossible to work on the crypto market.

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May 04, 2024, 04:51:50 AM
 #22

@zasad@. The tokens were not sold privately to investors with a promise to earn something with those tokens. Also this is where the confusion begins on using the Howey test on tokens because it can also bw considered that the tokens are the oranges and they are not the orange farm. Uncle Gary was arguing that the action of issuance on these tokens make them a security. But the judge made a ruling against this argument.

On the tokens that are being traded on exchanges and on platforms similar to Uniswap, these are not securities because there is no contract for these tokens to earn something if investors hold them. They are very much similar to memecoins.

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zasad@ (OP)
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May 04, 2024, 07:23:27 AM
 #23

@zasad@. The tokens were not sold privately to investors with a promise to earn something with those tokens. Also this is where the confusion begins on using the Howey test on tokens because it can also bw considered that the tokens are the oranges and they are not the orange farm. Uncle Gary was arguing that the action of issuance on these tokens make them a security. But the judge made a ruling against this argument.

On the tokens that are being traded on exchanges and on platforms similar to Uniswap, these are not securities because there is no contract for these tokens to earn something if investors hold them. They are very much similar to memecoins.
We are not talking now about tokens that are traded on centralized and decentralized exchanges.
We probably didn't pay attention to my reference to SAFT and SAFE(US).
When a company sells a token to everyone indiscriminately, as was the case in 2016-2018 at the ICO and actively advertises its product, it is more like selling securities. SEC regulation has just begun, and many more projects will be punished for this.

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