FTT - How One Crypto Is Avoiding SEC Regulation
Even before the FTX (CRYPTO: FTT) collapse and market meltdown, there was enormous regulatory uncertainty about the future of cryptocurrency. Given that there is currently no central regulator and no overarching legislation for the crypto industry, the SEC has taken the lead by suggesting nearly every crypto is actually a security and should be within its regulatory purview. In 2023, the U.S. could have its first-ever comprehensive regulatory framework for crypto, and the SEC could be the regulatory body enforcing it.
So it's perhaps no surprise that some cryptos have taken a proactive stance in avoiding potential SEC regulation. One example is Polkadot (CRYPTO: DOT) , which CoinMarketCap currently ranks as the No. 11 crypto in the world by market cap. Polkadot is now arguing that all of its crypto tokens have "morphed" from securities into software. As a result, they are outside the scope of any SEC regulation. Obviously, there's a lot to unpack here if you are thinking about buying Polkadot.
On Nov. 4, Polkadot put out a strange tweet: "Polkadot's native token (DOT), initially offered, sold, and delivered to purchasers as a security, has morphed and no longer is a security. It is software." That may sound like an outlandish claim, but Polkadot followed that up with a lengthy legal statement explaining its position.
For further details see:
How One Crypto Is Avoiding SEC Regulation