SEC rupture on “non -binding” encryption mining and disorganized interpretation
Securities and Stock Exchange Committee (SEC) Absolute Another unnecessary interpretation regarding mining in the cryptocurrency, adding to an increasing group of similar phrases that have emerged over the past two months.
This last guidance, issued by employees towards the office of the Acting Chairman, is trying to clarify whether the activities of the work proof of work (POW) fall under the definition of securities-but, according to the delegated Caroline A. Krincho, the voltage failed in it.
“These” explanatory “phrases are not supposed to be made or clear”
“Instead of engaging in an open and transparent process that takes advantage of the inputs of the market participants, these supposed” illustrative “expressions do not make progress or clear. She pointed to a defective assumption in the position of staff – mine workers are participating only to receive Block rewards, and not to profit from the efforts of others. Based on this hypothesis, the statement concludes that mining does not involve the expectation of profits related to the actions of the third party and therefore does not meet the definition of security.
According to Crenshaw, this conclusion depends on circular thinking. She said: “If you start assuming that mining is not implemented with the expectation of profits based on the efforts of others, you will necessarily conclude that it does not involve such expectation and therefore it is not safe.”
The statement tries to reduce its scope, stressing that it only applies to prisoners mining in general, and not to all POW differences or specific protocols. Crinko asked this narrow framework. She said, “Therefore, this uninterrupted statement applies to mining. Unless this does not happen,” she said.
The footnotes of the statement acknowledge that the final design under the Howe Test will continue to have a complete analysis of the economic reality to arrange a specific mining. Crenshaw stressed that relevant factors will include “the way in which billiards can be compensated, or how the dove or other people can participate in mining pools, or activities conducted by billiard operators.”
Although cautious responsibility is evacuated, Crenshaw warned that the statement can misrepresent its interpretation as a comprehensive exemption. She referred to a former publication of employees on Mimi currencies, which was similarly surrounded in a footnote, but was widely reported as a wholesale exclusion of securities laws. And she said, “Beware any headlines that herald the wholesale exemption for mining.” “I was printed a fine.”
The Securities and Stock Exchange Commission issued at least ten explanations in nine weeks, many of which are from the Companies Finance Department, as well as new efforts such as the encryption squad announced by the President. Crenshaw’s criticism is derived from the symbolism of the cave in Plato, indicating that the statement offers only a shadow of legal clarity with the width of the illusion of organizational certainty.
SEC Crenshaw Commissioner criticizes the organizer’s Meme Coin’s directives
Earlier this month, SEC Crenshaw New SEC guidelines for Meme currencies. SEC employees had previously concluded that mysterious category offers and sales consist of hundreds of unique encryption assets, not generally securities.
Crenshaw has warned of SEC that SEC’s guidelines are not a logical explanation for the current law and asking more questions than what Mimi currency is and whether this is a specific or useful classification for the purposes of current securities laws. She said: “It is summarized in a wide statement of general principles that provide little clarity or the ability to predict any specific currency.”
SEC Commissioner SEC is trying to answer some questions, including: What is the Mimi currency? And “Unlike how the promoter chooses its classification, which basis must determine whether something is Mimi?”
“Whatever one can understand the Mimi currency, the poster is not largely relevant whether something is offered and sold as“ security ”under SEC’s jurisdiction. During federal securities laws, Congress has determined“ security ”to include a“ investment contract ”, a term that embodies flexible instead of a fixed principle”, and “susceptibility to adapt to”. Nearly 80 years to determine if there is an investment contract.
“Contracts from the dominant authority do not allow such an easy avoidance of federal securities laws. Hao calls for facts and circumstances of“ economic facts ”for offer or sale. Today’s statement draws Mimi currency as cultural leaders is that the purpose of this is entertainment and social participation. Its value increases with the increase in the value associated with buyers and promoters – who will make both with the high value of the currency – may fulfill itself by itself The requirements of a “joint institution”.
“Separately, this guidance assumes that the MEME COIN’s profits are not based on the efforts of others, because the value of the currency is derived from” speculative trading and collective morale of the market “. But the reality is that trading and demand for MIM currencies is not in a vacuum. A currency listed in exchanging encryption.
The SEC Commissioner indicated that among the hundreds of self -announced coins in the market, there is no doubt about a series of offers and sales, some of which may be offers and sales of securities and some of them may not. “But it seems that advanced efforts, such as the efforts described above, which may lead to reasonable expectations of profits, outside the base. One wonders about the number of these coins examined to formulate the generalizations of MEME currencies stipulated in the guidance.”
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