Some Blockchain Tokens are Securities, Researchers Find
Does this product make sense? Is there a clear explanation of what the network does? Is there a clear use-case for the token? Has the developer been transparent about where funding will go? Is the project an open public blockchain or is it an opaque, unclear technology? Is it something marketed as a good or for speculative profits? These are the things....
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One of the older Cray Supercomputers used by the NSA to break ciphers. One of the stated strengths of Bitcoin has, from the beginning, been its ability to provide anonymity and a sense of security on the same level that cash transactions do. When one spends and is paid in cash, the only real record of the transaction which ties the spender to the cash spent is in the spender's possession and recording of a receipt. Bitcoin works in much the same way although a verifiable ledger called the Blockchain exists to keep the system in working order. That is, the Blockchain can be used to verify....
Blockstack may have successfully transformed its STX token from securities registration to commodity status. Blockstack may be about to go where no token has gone before, by metamorphizing from a security to a non-security, as far as U.S. regulators are concerned.In a Monday blog post, Blockstack CEO Muneeb Ali published a legal memorandum in which the firm argues that its Stacks (STX) tokens will no longer qualify as securities once the new blockchain launches. The firm predicts that Stacks Blockchain 2.0 will be live "at the end of 2020 or the beginning of 2021."But what does the new....
Jared Marx is an attorney at Washington, DC law firm Harris, Wiltshire & Grannis. He advises companies about bitcoin-related regulatory law and represents companies and individuals in civil and criminal proceedings. Here, he discusses why securities law is problematic for bitcoin 2.0 companies operating in the US. It is now almost commonplace to see a crypto 2.0 company raise development capital by pre-selling tokens to be used in their proposed project. Ethereum's multi-million dollar sale of 'ether' - the 'fuel' for running its proposed blockchain system - stands out as the most....
The Swift Institute has announced a €15,000 reward for the researcher who brings the best proposal on the blockchain technology’s use in securities markets. The announcement came in a document, titled “Call for Proposals”, where the institute asked researchers to provide their thesis on blockchain’s practical applicability in enterprise-level financial needs. It first recognized the technology for being popular enough to be experimented by financial institutions like Nasdaq, UBS and NYSE; but overall remained suspicious on its ability to handle higher transactions at a particular point of....
State Street Corp., a global financial holding company, has completed a 7-month blockchain test to streamline the securities lending process which it is considering deploying in 2017, Hu Liang, senior managing director of the Emerging Technologies Center at State Street, told Reuters. State Street is among several financial institutions to test blockchain technology and to consider deploying it in the near term. Blockchain Improves Lending. The blockchain system State Street has tested would transform the collateral posted by an investor to borrow securities from State Street’s clients....