July 7, 2023
We need the legislature to weigh in
Capitalism + Tech = Public Blockchains
Socialism (or Oligarchy) + Tech = Private Chains
Regulated Capital Markets + Tech = Public Chains with mint/burn capabilites for non bearer instruments (ie Tokenized Securities and Alts Funds, ie ERC-3643)
I understand that 1) we may need to evolve through permissioned chains but this type Store of Value is going on public chains, and 2) the short syllogism above is a gross over-simplification. The developer community in too big, the value proposition is too great in public chains. Everyone agrees, except those protecting the Fed's ability to print money an nauseum (the MMT crowd).
The various lawsuits and responses cited below clarifying a variety of questions are establishing a rule of law which was absent. “Indeed, it is not unlike the practice of Caligula, who reportedly ‘wrote his laws in a very small character, and hung them up upon high pillars, the more effectually to ensnare the people.’”Flores-Figueroa v. United States, 556 U.S. 646, 658 (2009) (Scalia, J., concurring in part)). This is from Quinn Emmanuelle's motion to dismiss for Bittrix - read every page.
All these lawsuits are not a way to have clarity, and there is no clarity... "As recently as late January 2023, the Commission refused to assert authority to regulate secondary-market sales of tokens, leading a federal judge to express “frustrat[ion]” with the SEC’s position. Tr. of Mot. Hr’g 26,SEC v. LBRY, Inc... (D.N.H. Jan. 30, 2023)...(“I can be absolutely clear I’m not going to do anything to restrict resales of [the token at issue] in this case, because the SEC had its chance to argue that in front of me, and they are not arguing it.”). - This is also from Quinn Emmanuelle
SEC Press Release: https://bit.ly/3pHAoOc
Coinbase Response: https://bit.ly/43hMUSv
Coinbase Request for Writ of Mandamus: https://bit.ly/3rkwb3F
SEC Lawsuit: https://bit.ly/3NFLFGN
Coinbase Response: https://bit.ly/3NGfLKf
In Fiddler on the Roof, they ask if there is a prayer for the Czar, “Of course . . . May God bless and keep the tsar . . . far away from us!” We are a nations of laws, people are leaving America to innovate because there is no clarity on how to innovate using Web 3 for capital Markets. We should not be dependent on the whims of a Mandarin, who opines on winners and losers. The SEC may lose the legal battles, but they are effective, bc the Bittrex petition for dismissal is from a bankrupt entity that has left the US and returned all the money from US customers. We need the legislature to weigh in.