Matt Levine: Ripple Is a Security and It Isn’t

Re:Matt Levine: Ripple Is a Security and It Isn’t by nly on Saturday July 15, 2023 @06:20AM (#36735264)

Is the US dollar also a "security"?

- It's created from nothing by the US Government in order to create a pool of "investors" who will fund the business of running the country.

- They regularly "buy back" USD in the form of issuing Treasuries

- It pays its employees in USD just like Meta pays its staff in stock.

- If USD becomes less valuable it makes its "stock buybacks" cheaper (borrowing is cheaper)

- It trades on public exchanges.

From the USG's perspective isn't it a security?

[ Parent | on HN ]

Re:Matt Levine: Ripple Is a Security and It Isn’t by nivertech on Saturday July 15, 2023 @06:42AM (#36735387)

ChatGPT says:

I'm not a lawyer ...

Regarding the U.S. government, it is generally not considered a common enterprise for the purposes of the Howey Test. The U.S. government does not typically operate as a profit-seeking enterprise or pool funds from investors for the purpose of generating profits. The U.S. government is a political entity responsible for governing and providing public services, rather than engaging in commercial or investment activities.

[ Parent | on HN ]

Re:Matt Levine: Ripple Is a Security and It Isn’t by Armisael16 on Saturday July 15, 2023 @09:46AM (#36736700)

The Securities Exchange Act of 1934 explicitly exempts currencies in section 3 part 10 (split across pages 11/12 of https://www.govinfo.gov/content/pkg/COMPS-1885/pdf/COMPS-188...).

Of course this is only an answer for the US legal system.

[ Parent | on HN ]