After a high-ranked official of the SEC made a public statement on Bitcoin and Ethereum being non-securities due to their decentralized nature; Tone Vays held a discussion with Charles Hoskinson of IOHK on the impact of SEC regulations on the crypto-market.
On being asked about his general takeaway from SEC’s public statement, he expressed the challenges with being a part of entrepreneurial, experimental projects. According to Hoskinson, it is like “living in a gray legal area” where one has the freedom to interpret the laws in a more entrepreneurial and innovation-friendly way. He added that these laws are not stable; regulations change with movement in politics.
Hoskinson’s observation states that the idea of a decentralization test is emerging for security status where authorities are baffled regarding the actively traded tokens that live on the secondary marketplace. What he would like for SEC to do is take a clear stand on tokens trading in the secondary marketplace and declare them as non-securities. He said:
“…SEC to openly say that okay, as far as we are concerned, if you need this collection of criteria; these tokens that are trading in the secondary market are not gonna be considered security. Maybe they are something else like commodities, but they are not securities.”
This will give clarity to the retailers, investors, and exchanges and prevent them from building on “quicksand”.
Charles Hoskinson is the CEO and Co-founder of the technology company founded in 2015 called Input-Output Hong Kong. It uses peer-to-peer innovations to provide financial services to the world. They build cryptocurrencies and blockchains for academic institutions, government entities, and corporations. Zen Cash and Ethereum Classic are just two of them, while Cardano is the most known coin built by them.
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