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15 sats \ 6 replies \ @KingZing 12 Jul 2022 \ parent \ on: If You Aren't Trying to be Money, Why Do You Need a Coin? bitcoin
labelling those tokens as tokenized security would make transaction on Defi a nightmare for everyone. I don't see that happening. Best thing SEC can do is to come up with a new criteria imo.
That is what you want them to do, but there is no incentive for them to create a new standard outside of the howey test. The DeFi tokens pass the test on almost all of them, and will eventually be regulated as securities.
Play with fire at your own risk.
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there's no incentives now, but more and more money and talents are flowing into the industry. they will have to deal with it eventually in ways that it won't wipe out the entire sector.
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I appreciate your stance on this, but I just completely disagree with you. I don't think DeFi will ever get so big that they wont regulate under the standard securities laws. That completely defies logic and assumes that DeFi will grow to be larger than TradFi all ahead of them actually regulating it.
I'm sorry to get heated about it, but I just think your take on this is dangerous for anyone reading these posts. 100% based on hopium about something that has very little traction in the real world.
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I don't think there's any hopium here? majority of the financial hubs like SG/UK/HK are working on regulations for digital assets. Why would the US would be any different?
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Because Gary Gensler (Chair of the SEC) has stated over and over that almost all coins besides BTC (and ETH, which is bullshit) are unregistered securities. There is no indication of any type that suggests special laws being created around crypto DeFi. None. Zero.
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But that's why I said, eventually they have to.
The SEC, like central bankers, do not really call the shot. The market does.
It can sit and wait for a couple more years and see if defi dies on its own, but chances are it most likely wouldn't.
A lot of high executives are leaving tradfi to join crypto even during this bear market. This pushes more pressure on them to do something, especially if other financial hubs already have their regulation all set up.
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