Two Executives in Sam Bankman-Fried’s Crypto Empire Plead Guilty to Fraud

Re:Two Executives in Sam Bankman-Fried’s Crypto Empire Plead... by DebtDeflation on Thursday December 22, 2022 @07:33AM (#34092670)

The original position was that cryptocurrencies were commodities not securities, and that is what allowed all the bullshit to flourish. In July of 2017 the SEC issued a ruling that any coin issued via ICO could be considered a security on a case by case basis. Yesterday is the first time I've seen the SEC make the argument that exchange native tokens are investment contracts and therefore securities.

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Re:Two Executives in Sam Bankman-Fried’s Crypto Empire Plead... by ls15 on Thursday December 22, 2022 @08:10AM (#34092859)

Exchange tokens are amongst the more obvious securities IMO. I think they tick all marks of the Howey Test:

    - An investment of money
        (Send money/BTC, get token)
    - In a common enterprise 
        (the exchange)
    - With the expectation of profit
        (Token burns)
    - To be derived from the efforts of others
        (Exchange pays with profits for token burns)

https://www.investopedia.com/terms/h/howey-test.asp

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