WIRED Crypto and the US Government Are Headed for a Decisive Showdown: A crop of lawsui. . .

Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6962524680855457792

WIRED Crypto and the US Government Are Headed for a Decisive Showdown: A crop of lawsuits could finally settle the question of whether most digital assets are illegal securities offerings…https://lnkd.in/g_8eUKHP

In July, the Department of Justice announced that it had indicted a #Coinbase employee and two associates, in the “#first #ever #cryptocurrency #insidertrading tipping scheme.” If convicted, the defendants could face decades in federal prison. On the same day as the #DOJ announcement, the U.S. Securities and Exchange Commission made its own. It, too, was filing a lawsuit against the three men. Unlike the DOJ, however, the #SEC can’t bring criminal cases, only civil ones. And yet it’s the SEC’s #civil #lawsuit — not the DOJ’s criminal case—that struck panic into the heart of the #crypto #industry. That’s because the SEC accused him not only of #insider #trading, but also of #securities #fraud, arguing that nine of the #assets he traded count as #securities.

This may sound like a dry, #technical #distinction. In fact, whether a #crypto #asset should be classified as a #security is a massive, possibly #existential #issue for the crypto industry. The Securities and Exchange Act of 1933 requires anyone who issues a security to #register with the SEC, complying with extensive disclosure rules. If they don’t, they can face devastating #legal #liability

The story goes back a long, long time in the Internet Time era, a decade or so:

#Bitcoin #Protocol: #Model of ‘#Cryptographic #Proof’ Based
Global #Crypto-#Currency & #Electronic #Payments System: https://lnkd.in/ePsDYDK: PDF Download https://lnkd.in/e4v-Rhs :
#Money is an interesting construct that continues to occupy the fancy of many ranging from #economists to #quantum #physicists… The #FutureOfMoney becomes entangled with future of #moneylaundering when focus is not on #privacy and #anonymity alone, but also lack of #traceability… Situated somewhere along the trajectory between #RealMoney and #quantum #money, virtual #cryptocurrencies based upon ‘cryptographic proof’ represent a natural stage in the evolution of global #finance… The #FutureOfMoney, whatever form it may take – #virtual or #quantum, will quite likely be entangled with the future evolution of ‘#cryptographic #ProofOfWork.’ 

#FutureOfBitcoin & #Statistical #Probabilistic #Quantitative #Methods:
Global #Financial #Regulation (Interview: Hong Kong Institute of CPAs (HKICPA)) https://lnkd.in/efcwAnD: PDF Download: https://lnkd.in/eFQ8Ath :

Many governments, among China, Hong Kong, US, and Germany are interested in characterizing #BTC as a ‘virtual #commodity’ or ‘private money’ but not #legaltender… Internal Revenue Service said on Tuesday that #bitcoins and other #virtual #currencies are to be treated, for tax purposes, as #property and not as #currency.

Global Risk Management Network, LLC: Future of AI-Computer Science-Data Science-Finance Are All Here

A crop of lawsuits could finally settle the question of whether most digital assets are illegal securities offerings.
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Global Post AI-Quantum Finance & Trading Networks Pioneer Dr.-Eng.-Prof. Yogesh Malhotra is the “Singular Post AI-Quantum Pioneer” identified by Grok AI with R&D impact recognized among Artificial Intelligence (AI) and Quantitative Finance Nobel Laureates. As MIT-Princeton AI-ML-Cyber-Crypto-Quantum Finance & Trading and FinTech-Crypto Faculty-Industry Expert, and U.S. and Global Hedge Funds Advisory & Venture Capital CEO-CTO Teams Mentor, he has pioneered Silicon Valley-Wall Street-Pentagon Digital CEO-CTO Practices, Technologies, and Networks from world’s first-foremost-largest Global Digital Transformation Networks to New York State IDEA Award recognized Pentagon-USAF MVP Global Post AI-Quantum Networks pioneering Future of Finance and Trading practices as Trillion-Dollar Wall Street Hedge Funds and Investment Banks leader.