SEC Says DAO Regulated As A Security - Who Could Have Predicted This? Not Me!
The SEC has issued a statement today announcing that the DAO under Etherem is in fact subject to regulations as a security. This opens up a whole new realm of risks for not only the DAO, and all the recent ICOs, Ethereum, but cryptocurrency in general. This has the potential to blow a huge crater in the cryptocurrency market as a whole as the ICO bubble pops and sucks a large portion of the cryptocurrency market share out of the market with it. I don't want to be the one who said "I told you so", but... I told you so.
Immediate market reaction of ETH as of the time of posting:
"SEC Issues Investigative Report Concluding DAO Tokens, a Digital Asset, Were Securities
U.S. Securities Laws May Apply to Offers, Sales, and Trading of Interests in Virtual Organizations
FOR IMMEDIATE RELEASE
2017-131
Washington D.C., July 25, 2017—
The Securities and Exchange Commission issued an investigative report today cautioning market participants that offers and sales of digital assets by "virtual" organizations are subject to the requirements of the federal securities laws. Such offers and sales, conducted by organizations using distributed ledger or blockchain technology, have been referred to, among other things, as "Initial Coin Offerings" or "Token Sales." Whether a particular investment transaction involves the offer or sale of a security – regardless of the terminology or technology used – will depend on the facts and circumstances, including the economic realities of the transaction.
The SEC's Report of Investigation found that tokens offered and sold by a "virtual" organization known as "The DAO" were securities and therefore subject to the federal securities laws. The Report confirms that issuers of distributed ledger or blockchain technology-based securities must register offers and sales of such securities unless a valid exemption applies. Those participating in unregistered offerings also may be liable for violations of the securities laws. Additionally, securities exchanges providing for trading in these securities must register unless they are exempt. The purpose of the registration provisions of the federal securities laws is to ensure that investors are sold investments that include all the proper disclosures and are subject to regulatory scrutiny for investors' protection."
Full Statement:
https://www.sec.gov/news/press-release/2017-131
Read more at: http://www.truthbesold.com/
Similar articles:
https://steemit.com/cryptocurrency/@ericarthurblair/is-ethereum-a-trojan-horse
https://steemit.com/ethereum/@ericarthurblair/ethereum-is-a-ticking-time-bomb
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It’s not shocking. When anything becomes profitable enough and too far gone out of reaching government control. They will look for ways to rein it in, and more importantly tax it. I was suspecting this was there long term goals all along. Not empower cryptocurrency but not get too much in its way either. I can only imagine a few agencies enjoy using cryptocurrency with how convince it is to pay off and buy certain things so they are not on the books.
We should wonder if they grasp what Ethereum devs did to correct that theft? By creating ETH they essentially doubled the amount of ETH by creating ETH and ETC. So whomever has stolen that 50 million got away with it because ETC is still traded on the open market. Now BItcoin Cash (BCC) wants to do the same for BTC even though both are trading now at different prices on the open market. They are not going to fork BTC on Aug. 1st because they already have with BCC, am I the only one that sees the fraud here? If you buy a digital apple from me and I replicate it before giving it to you have I given you anything that I do not have? No, I still have a digital apple, now you do too, but I also now got your money. Check out Uetoken.com
The question you should be asking is what they did to ALLOW that theft in the first place, and who gave them the authority to unilaterally change the blockchain, which was previously understood as an irrevocable ledger of transactions? ETC was not the fork, ETH is the fork. ETC was exactly the same thing before and after the fork, except in name. The developers of ETH could have prevented the fork by allowing losses to be born as a result of the faulty DAO code, as would happen in any other free market system thus incentivizing developers to create better code and investors to vette their investments more carefully. Instead they chose to save their own personal investments, and a handful of other large investors, at the expense of all ETH holders. Welcome to cryptosocialism.
ericarthurblair told me he downvoted my account because I am a black muslim.