Blockchain and ICOs are now regulated by SEC
"Everyone knew that this day would come. We just did not know when nor did we know how it would play out. Now we have our answers."
“federal securities laws apply to those who offer and sell securities in the United States, regardless whether the issuing entity is a traditional company or a decentralized autonomous organization, regardless whether those securities are purchased using U.S. dollars or virtual currencies, and regardless whether they are distributed in certificated form or through distributed ledger technology.”
more info here: https://venturebeat.com/2017/07/25/sec-to-blockchain-community-you-are-now-regulated/amp/
This is really ok this makes it legitimate.
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STOPAlthough it can seem a bit scary the more governments get involved with regulating cryptocurrencies rather than banning them, the more legitimate the coins will be seen in the eyes of everyday investors. This is good news!
We can expect many more efforts to regulate crypto-currencies, but the market always finds a way to handle regulation one way or another. In the end, I'm convinced that crypto-currencies will survive.
I don't agree with the SEC ruling that crypto-currencies are securities. They do not represen partial ownership in a company or other asset. Instead, they are the first form of money that has originated with no other use. The U.S. dollar, for example, began as 1/20th of an ounce of gold.
Nonetheless, the classification of crypto-currencies as securities does have another bright spot that the article does not mention. If they are securities then they can not be money. I'm no tax expert but, as I see it, this means that they can not be subject to income taxes.
If an employer pays an employee or contractor in crypto, the SEC logic would dictate that the recipient would not owe any tax until and unless they exchanged the crypto for dollars at a profit. At that point, they would be subject to a capital gains tax. If the recipient exchanged the crypto directly for goods or services, there would be no tax owed.
Good Logic!!
And i think it is just like that. Bur the law probably prohibits paying employees as a wage. You would still have to pay at least minimal salary. You can add crypto (securities) on top of that that will be taxed when sold as a capital gain i think. Now a lawyer though.
give and take policy
Nice post @onejoe i followed
This is a exaggeration of what the SEC actually said. They said the DAO was selling securities and should fall under securities regulations. They also said any other ICOs that represent themselves like securities would be subject to regulation. I interpreted the ruling to say that crypto currencies don't imply ownership rights in an entity like the DAO did and would not be subject to securities law. ICOs will be examined individually to determine whether they include ownership rights and a share of the issuing entities earnings. Just my reading, you should read it yourself before assuming broad application.
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STOPgood
@onejoe , I hope we become good friends in the @steemit
I am happy to follow and vote you
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