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notes/are-crypto-tokens-securities.md
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@ -30,7 +30,7 @@ Rufus and Stephen end their conversation with an analysis of this position and t
## What are securities?
## What Are Securities?
* A [security](../concepts/security.md) is a collective legal fiction that pools money and mediates [income-cashflows](../concepts/income-cashflows.md) between people according to an agreed-upon framework.
* “A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders are able to transfer their shares to others without any effects to the continued existence of the company.”
@ -38,7 +38,7 @@ Rufus and Stephen end their conversation with an analysis of this position and t
* Gave rise to a modern framework of laws that cover financial products from debt instruments, bonds, equities, and derivatives. The legal foundation on which all of market capitalism is built.
* **Because of their centrality to markets, securities have strict registration, ownership and transfer regulation.**
## The debate surrounding crypto investments
## The Debate Aurrounding Crypto Investments
* There is currently debate about how crypto investments fall under the existing securities regulatory framework. This is being debated inside the government regulatory agencies, on the floor of the senate, and in the courts.
* The outcome of the final ruling will potentially impact trillions of notional value in “scofflaw” investments of potentially unregistered securities.
@ -61,7 +61,7 @@ Rufus and Stephen end their conversation with an analysis of this position and t
* Many policymakers on both sides of the aisle debate whether or not the accreditation laws are too restrictive and shut the public out of high-risk-high-return investments that only wealthy people have access to.
* On the right, then individual choice is a paramount, the government shouldn’t dictate risk-taking in markets. Just “evolution” and the natural state of being.
* On the left, Pikkety’s analysis that wealth generated from capital grows faster than economic output and patrimonial capitalism leads to distortions of markets and inequality.
### Steel manning the position that crypto investments should not be brought within the securities regulation framework
### Steel Manning the Position that Crypto Investments Should Not Be Brought Within Tformhe Securities Regulation Framework
* It is very easy to create an equity crowdfunding and cap table structure on top of crypto platforms like [ethereum](../concepts/ethereum.md).
* Individuals can do it anonymously and raise billions of dollar equivalents in seed capital for ventures that are very early. Don’t need to involve the SEC, government or lawyers at all.
* Previously this kind of access was gated to US persons with connections and access to funds, connections and access to capital.