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When should we expect the start of strict regulations?
Who regulates financial markets and why?
What are Utility Tokens and Security Tokens?
What are the criteria according to which #SEC(Securities and Exchange Commission) will consider cryptocurrencies as Security Tokens?
Which projects will continue their existence and why?
The future of stablecoins.
💙
1. When should we expect the start of strict regulations?
❗️According to the insider news I have, the regulations should start in Q1-Q2 of 2023 and will get stricter and stricter over time. All I can say is that Gary Gensler will be trying to start the MAIN PROCESS of adjustments before November 5, 2024 (US presidential election).
2. Who regulates all financial markets and why?
All US financial markets are regulated and controlled by #SEC(Securities and Exchange Commission), headed by Gary Gensler. The objectives of market regulation are to control fraud, control agency problems, promote fairness, set mutually beneficial standards, prevent undercapitalized financial firms from making excessively risky investments, prevent scams, prevent ponzi schemes, and ensure that the citizens of the United States are safe and not exposed to risk investments.
3. What are Security Tokens and Utility Tokens?
Security Tokens are a financial instrument, the main function of which is to make a profit by increasing the price of an asset and/or activities of third parties. Security tokens give holders the right to: share in profits, dividend payments, company capital, assets or their shares, debt payments, etc.
And Utility Tokens, are tokens with the help of which users get access to the software utility (or service) of the blockchain platform. They do not promise any benefits, do not give ownership rights to the land, property, or other assets of the company, and are not analogs or substitutes for loan agreements.
4. What are the criteria according to which #SEC(Securities and Exchange Commission) will consider cryptocurrencies as Security Tokens?
❗️Speaking without complex terms, according to #SEC, all cryptocurrency projects that have conducted Public Sales (ICO, IDO, IEO, etc.) for US citizens, can be delegated(Staked), except blockchains on POS or have ever burned tokens are commodities.
5. Which projects will continue their existence and why?
Not only those projects that will not be recognized as securities according to the above points will be able to continue their existence. Projects that fall under the regulation will have the opportunity to pay a fine, which in most cases will be equal to the amount collected during the Public Sale.
In this case, we can conclude which cryptocurrencies will not fall under the regulation and which will be able to pay off the punishment. I made a short list of examples that are 99% likely not to be related to regulations. You can see it below 👇
$BTC(The #SEC has already announced that #bitcoin will not be a security)
$ETH(Although #ETH had a Public Token Sale in 2014, they were recognized as a Utility Token, but it’s worth recognizing that this was before the transition of Ether to POS. Even if there will be questions to them in the future, they have finances to pay any fine, and a lot of influential people, companies, and projects are interested in their future)
$Chia Network(Check out this asset! Its creator Bram Cohen, who is also the creator of BitTorrent. Approached the issue of regulation very competently. Chia has not held a Public Token Sale, has no staking, have green mining, the network is truly decentralized thanks to the Proof of Space and Time consensus and they have raised only private investments, but VC funds will not receive their tokens until a clear picture of future regulations.)
All projects that held a Public Sale on Coinlist.(Because they, unlike all other IDOs platforms, didn't sell tokens to US citizens and they settled all legal law issues before every Public Sale.)
Projects that distributed their tokens only through Private Sales, Lockdrops, and Airdrops. As an example, I can recommend paying attention to: DYDX, Polkadot/Kusama, OasisProtocol, ShiddenNetwork, AstarNetwork, Aptos, #ICP, INTR/KINT, Compound, Math, Helium, DOT/KUSAMA parachains, and others...
6. The future of stablecoins.
I recommend converting all your stablecoins to USDC and BUSD. USDT is also a good choice, but in this case, there is an unpeg risk due to unconfirmed reserves of Tether Holdings. The rest will leave the market. There is confirmed information that decentralized stablecoins will be the first to go. The largest one of them, DAI has already announced its possible closure and unpeg. The rest will follow over the next year.
7. 💙
If someone has read up to this point, comment on what topic you want to see the next thread, be careful what you invest your money in, don't keep your funds on any centralized exchanges, and good luck to you and your family!
When should we expect the start of strict regulations?
Who regulates financial markets and why?
What are Utility Tokens and Security Tokens?
What are the criteria according to which #SEC(Securities and Exchange Commission) will consider cryptocurrencies as Security Tokens?
Which projects will continue their existence and why?
The future of stablecoins.
💙
1. When should we expect the start of strict regulations?
❗️According to the insider news I have, the regulations should start in Q1-Q2 of 2023 and will get stricter and stricter over time. All I can say is that Gary Gensler will be trying to start the MAIN PROCESS of adjustments before November 5, 2024 (US presidential election).
2. Who regulates all financial markets and why?
All US financial markets are regulated and controlled by #SEC(Securities and Exchange Commission), headed by Gary Gensler. The objectives of market regulation are to control fraud, control agency problems, promote fairness, set mutually beneficial standards, prevent undercapitalized financial firms from making excessively risky investments, prevent scams, prevent ponzi schemes, and ensure that the citizens of the United States are safe and not exposed to risk investments.
3. What are Security Tokens and Utility Tokens?
Security Tokens are a financial instrument, the main function of which is to make a profit by increasing the price of an asset and/or activities of third parties. Security tokens give holders the right to: share in profits, dividend payments, company capital, assets or their shares, debt payments, etc.
And Utility Tokens, are tokens with the help of which users get access to the software utility (or service) of the blockchain platform. They do not promise any benefits, do not give ownership rights to the land, property, or other assets of the company, and are not analogs or substitutes for loan agreements.
4. What are the criteria according to which #SEC(Securities and Exchange Commission) will consider cryptocurrencies as Security Tokens?
❗️Speaking without complex terms, according to #SEC, all cryptocurrency projects that have conducted Public Sales (ICO, IDO, IEO, etc.) for US citizens, can be delegated(Staked), except blockchains on POS or have ever burned tokens are commodities.
5. Which projects will continue their existence and why?
Not only those projects that will not be recognized as securities according to the above points will be able to continue their existence. Projects that fall under the regulation will have the opportunity to pay a fine, which in most cases will be equal to the amount collected during the Public Sale.
In this case, we can conclude which cryptocurrencies will not fall under the regulation and which will be able to pay off the punishment. I made a short list of examples that are 99% likely not to be related to regulations. You can see it below 👇
$BTC(The #SEC has already announced that #bitcoin will not be a security)
$ETH(Although #ETH had a Public Token Sale in 2014, they were recognized as a Utility Token, but it’s worth recognizing that this was before the transition of Ether to POS. Even if there will be questions to them in the future, they have finances to pay any fine, and a lot of influential people, companies, and projects are interested in their future)
$Chia Network(Check out this asset! Its creator Bram Cohen, who is also the creator of BitTorrent. Approached the issue of regulation very competently. Chia has not held a Public Token Sale, has no staking, have green mining, the network is truly decentralized thanks to the Proof of Space and Time consensus and they have raised only private investments, but VC funds will not receive their tokens until a clear picture of future regulations.)
All projects that held a Public Sale on Coinlist.(Because they, unlike all other IDOs platforms, didn't sell tokens to US citizens and they settled all legal law issues before every Public Sale.)
Projects that distributed their tokens only through Private Sales, Lockdrops, and Airdrops. As an example, I can recommend paying attention to: DYDX, Polkadot/Kusama, OasisProtocol, ShiddenNetwork, AstarNetwork, Aptos, #ICP, INTR/KINT, Compound, Math, Helium, DOT/KUSAMA parachains, and others...
6. The future of stablecoins.
I recommend converting all your stablecoins to USDC and BUSD. USDT is also a good choice, but in this case, there is an unpeg risk due to unconfirmed reserves of Tether Holdings. The rest will leave the market. There is confirmed information that decentralized stablecoins will be the first to go. The largest one of them, DAI has already announced its possible closure and unpeg. The rest will follow over the next year.
7. 💙
If someone has read up to this point, comment on what topic you want to see the next thread, be careful what you invest your money in, don't keep your funds on any centralized exchanges, and good luck to you and your family!
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