undefined | Better HN

0 pointsqeternity2y ago0 comments

> we're simply in uncharted territory here

We're not. Gensler certainly doesn't think so. With a few exceptions, the overwhelming majority of crypto are securities. In most instances, they are indistinguishable from equity.

Just because some people believe in the promise of blockchain technologies doesn't change the nature of the things that you ultimately store on said chains.

0 comments

DennisP2y ago

Apparently he thought ETH was in uncharted territory. Meanwhile the head of the CFTC says many cryptocurrencies including ETH are commodities.

qeternityOP2y ago

Yes, the head of the Commodities Futures Trading Commission has a clear incentive to call things commodities. Unfortunately, he's not the one who gets to say whether they're securities.

DennisP2y ago

The head of the Securities and Exchange Commission has a clear incentive to call things securities.

He doesn't "get to say" whether things are securities either. He can claim they're securities but he has to prove cases in court, which isn't turning out to be that easy even for XRP.

Ultimately, Congress decides the rules, and not everyone in Congress thinks the SEC is doing a good job here.

jrm42y ago

Gensler doesn't much think at all, apparently.

Again, "Crypto is securities" is an interesting proposition, but there are legal tests and crypto doesn't always "pass" all of them. I'm not saying he's definitely wrong, I am saying that there's not enough "homework" out there to prove he's right and he (et al) need to do better about putting up or shutting up.

polygamous_bat2y ago

Would you read what you are writing?

Gensler doesn't need to prove _all_ crypto is definitely 100% unregistered security, just that some of the ones sold by Coinbase is. How certain are you in the claim that none of the cryptocurrencies peddled by Coinbase is not legally a security?

qeternityOP2y ago

Yeah well that's just not how any of this works.

Gensler makes the rules, and the courts will adjudicate any challenges.

There's no homework to be done: most crypto doesn't pass the Howey test.

j / k navigate · click thread line to collapse

0 pointsqeternity2y ago0 comments

> we're simply in uncharted territory here

We're not. Gensler certainly doesn't think so. With a few exceptions, the overwhelming majority of crypto are securities. In most instances, they are indistinguishable from equity.

Just because some people believe in the promise of blockchain technologies doesn't change the nature of the things that you ultimately store on said chains.

0 comments

DennisP2y ago

Apparently he thought ETH was in uncharted territory. Meanwhile the head of the CFTC says many cryptocurrencies including ETH are commodities.

qeternityOP2y ago

Yes, the head of the Commodities Futures Trading Commission has a clear incentive to call things commodities. Unfortunately, he's not the one who gets to say whether they're securities.

DennisP2y ago

The head of the Securities and Exchange Commission has a clear incentive to call things securities.

He doesn't "get to say" whether things are securities either. He can claim they're securities but he has to prove cases in court, which isn't turning out to be that easy even for XRP.

Ultimately, Congress decides the rules, and not everyone in Congress thinks the SEC is doing a good job here.

jrm42y ago

Gensler doesn't much think at all, apparently.

polygamous_bat2y ago

Would you read what you are writing?

qeternityOP2y ago

Yeah well that's just not how any of this works.

Gensler makes the rules, and the courts will adjudicate any challenges.

There's no homework to be done: most crypto doesn't pass the Howey test.

j / k navigate · click thread line to collapse