How recent SEC ruling will affect Tezos and XTZ?


#1

It would be interesting to know, what will be the effect of recent SEC ruling on DAO! Any thoughts? Here is the press release from the SEC : https://www.sec.gov/news/press-release/2017-131


#2

It’s early days on understanding what the impact could be, and I’m speaking only from my own perspective. I’m not a member of the Tezos team and have no financial relationship other than as a contributor. In general I think this is neutral to good for Tezos.

  1. It may have a chilling effect on new ICO offerings, and on fundraising from non-accredited US citizens going forward. Tezos, of course, has negotiated those hurdles already so may be in the driver seat from a war-chest perspective for some time to come.

  2. Again, not an expert on SEC rules, but I believe the less a token looks like a company with a central governing authority, the more likely it will be ignored by the SEC. Tezos may be well positioned here. The foundation is a non-profit that exists in a temporary fashion to guide Tezos into existence. It probably disappears within a decade, leaving some sort of decentralized governance model. The DAO had an executive committee that screened proposals before the DAO token holders could vote, and that was problematic for the SEC. We know little of the protocol proposal and review process for Tezos, but potentially it can be fully decentralized, and accessible to all token holders. With no mailing address or governing board (unless the protocols create it), Tezos may avoid one of the DAO’s major pitfalls.

  3. On the negative side, it will become more challenging for tokens to get listed on exchanges that cater to US investors. I now expect we will trade on non-US exchanges that do not allow US citizen accounts before we have an exchange option domestically. Coinbase will be seen as the gold standard, and being traded there will be a major milestone that will become harder with this scrutiny. This may put a damper on those who invested in Tezos for a quick return, but should not really impact our long term community vision or value creation.


#3

If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.

This will have little to no affect on Tezos, it is a foundation that ran a fundraiser.
As a matter of fact where is my Tezos swag, tote bag, T-shirt and beach ball?


#4

Funny you should mention swag… stay tuned.


#5

So long coin flippers, hello skin in the game visionaries.


#6

@chainomatic how about theme music, logos, art, games, virtual reality etc.


#7

The fact that they did not press charges against the token providers they investigated tells us a lot. The FED be it the SEC or the IRS have no leniency to cases such as these that have big dollars involved unless they think they have less chance for conviction or the laws they use to investigate is out of date and ineffective. I hope SEC understands that this is a new technology and capability that requires a different look and perhaps new laws to govern it.

Congress should enact law that makes US citizens be part of the blockchain movement. Given the fact that US Congress is bought by pro centralized and “trusted” institutions I doubt if they are going to make it easier.

I think what SEC is saying about “protecting the investors” is partly bs. They are just protecting the advantages big time investors have and don’t want that to be disrupted.


#8

Do you think the Tezos team knew in advance about the SEC announcement? It would seem they are well connected and it wouldn’t surprise me if they knew more than we did about the ruling before the actual announcement or the ICO. Timing of ICO and the fact it was limited to participants outside of the US (if connecting directly) makes me think.

If the Tezos team did have prior knowledge it boosts my confidence in their directors/advisors. Great coders are awesome but the right connections is key to this space. Look at Ripple, their board of directors is awesome (many connections) and has given them big advantages in the crypto space related to FI. Ripple was one of the first to focused on regulatory compliance, back-end utilization, interledger and FinCin even fined them which pushed them away from their own wallets/excahnge, a sign of legitimacy and willingness to adjust which defines who survives when it comes to technology that can disrupt an industry.


#9

i kind of think they did know in advance. KB had an interview on Jul 12 (before the SEC announcement) where they talked about this exact issue, briefly going over what a security was/did and how an ICO (especially in a donation model) wouldnt be a security.

sure seems like it.


#10

Whats up gents yaz miss me??? Im still the same i aint changed!
Tezo famz whats the news lately? Me currently inhailing that Smokey Robinson while flipping coins and stacking crypto with my Little RED Riding Hood eyes! God bless Tezos. Thx