Re: [EXT] Re: Unlawful Unregistered Securities, DID and VC

+1

From: Kim Hamilton <kimdhamilton@gmail.com>
Date: Tuesday, June 13, 2023 at 5:52 PM
To: Steven McCown <steve@mccown.me>
Cc: Melvin Carvalho <melvincarvalho@gmail.com>, Michael Prorock <michael.prorock@mesur.io>, Orie Steele <orie@transmute.industries>, Steve Capell <steve.capell@gmail.com>, W3C Credentials Community Group <public-credentials@w3.org>, W3C DID Working Group <public-did-wg@w3.org>, W3C Chairs of DID WG <group-did-wg-chairs@w3.org>
Subject: Re: [EXT] Re: Unlawful Unregistered Securities, DID and VC
It would be helpful to see the intersection of methods listed in the did registry with the verboten chains/tokens before proceeding. It's hard to see the scope of the perceived problem otherwise.

On Tue, Jun 13, 2023 at 5:39 PM Steven McCown <steve@mccown.me<mailto:steve@mccown.me>> wrote:
Reading the SEC’s filings on Binance and Coinbase, there are some very serious charges / allegations.  Both specify “Jury Trial Demanded”, so this should go on for a while.

I’m wondering, what is the W3C / WG policy for how to proceed when such lawsuits are filed (esp. by governments)?

In the email thread below, Orie commented with "You are welcome to raise a PR removing an entry”.  That seems like a reasonable discussion.  Presuming that there is (will be) a PR, could someone post the link?

The other thing I read below was a suggestion for “standardizing of few methods, such as did:web”.  While I can appreciate the desire to act given the SEC’s actions, that seems like a fundamental change in direction rather than a modification directed towards the subjects of the SEC's filings.  I propose that we defer that to a separate discussion.

Best,

Steve



Sent from my iPhone
On Jun 13, 2023, at 3:20 PM, Melvin Carvalho <melvincarvalho@gmail.com<mailto:melvincarvalho@gmail.com>> wrote:

You don't often get email from melvincarvalho@gmail.com<mailto:melvincarvalho@gmail.com>. Learn why this is important<https://aka.ms/LearnAboutSenderIdentification>


út 13. 6. 2023 v 22:16 odesílatel Kim Hamilton <kimdhamilton@gmail.com<mailto:kimdhamilton@gmail.com>> napsal:
I got one, thanks to a lovely person on the list. DM me if you need it too

For a more comprehensive understanding, I recommend reading the original SEC guidance, which you can find at this non paywalled link:

https://www.sec.gov/litigation/complaints/2023/comp-pr2023-102.pdf


This document provides thorough case studies, including insights from blog posts, Twitter posts, and transcripts. For an illustrative and relevant example, you might find the Filecoin / Protocol Labs case study particularly informative, which is covered in parts 163-189.


On Tue, Jun 13, 2023 at 11:28 AM Kim Hamilton <kimdhamilton@gmail.com<mailto:kimdhamilton@gmail.com>> wrote:
Non-paywall link please?

On Tue, Jun 13, 2023 at 5:15 AM Melvin Carvalho <melvincarvalho@gmail.com<mailto:melvincarvalho@gmail.com>> wrote:


st 7. 6. 2023 v 15:20 odesílatel Michael Prorock <michael.prorock@mesur.io<mailto:michael.prorock@mesur.io>> napsal:
Personal hat firmly on, I would be a fan of removing the did registry. Especially in favor of standardizing of few methods, such as did:web

That makes sense to me, Mike, as a possible way forward

The Wall Street Journal recently published an article titled "The List of Crypto Coins the SEC Says Are Illegal Is Growing". The word "illegal", when used by such an eminent publication, commands significant attention and should not be taken lightly.

https://www.wsj.com/livecoverage/stock-market-today-dow-jones-06-06-2023/card/the-list-of-crypto-coins-the-sec-says-are-illegal-is-growing-VDghHoLBchVk5hzYxox6

Working groups and community groups, particularly those associated with reputable bodies like the W3C, should be vigilant about the materials they produce. It's imperative that such entities abstain from promoting or associating with these unregistered securities which have been deemed illegal. Given the gravity of securities laws and the extensive ramifications of their violations, we cannot afford to be complacent.

Such a situation demands proactive action, and it's crucial to remember that the gravity of securities laws supersedes even the consensus within the W3C.


Mike Prorock
CTO - mesur.io<http://mesur.io/>

On Wed, Jun 7, 2023, 08:34 Orie Steele <orie@transmute.industries> wrote:
W3C operates on consensus, and the registry is a note.

You are welcome to raise a PR removing an entry and provide your justification, if the working group can't resolve the issue, it can be escalated all the way up the chain.

(Pun intended).

The working group might also consider removing the method registry entirely, since it is not necessary for URNs to remain namespaces, and has been cited as a point of market confusion.

Be the change you want to see in the world.

On Wed, Jun 7, 2023, 5:25 AM Steve Capell <steve.capell@gmail.com<mailto:steve.capell@gmail.com>> wrote:
Well I’ve said before that it looks to me like all but a dozen or so did methods are really just marketing for “me too cryptocurrency ponzu schemes”

Feel a like a government blacklist is more than enough rationale for w3c to remove those methods from the register

Probably a lot more ought to get shot too but it’s not obvious what is the fair criteria for shooting
Steven Capell
Mob: 0410 437854


On 7 Jun 2023, at 8:02 pm, Melvin Carvalho <melvincarvalho@gmail.com<mailto:melvincarvalho@gmail.com>> wrote:

This issue has been raised previously, but the severity of the situation has escalated recently. The US government has started taking legal action against companies that allegedly promote unregistered securities, as outlined in this document:

https://www.docdroid.net/I02zzqT/sec-v-binance-4-pdf.


Specifically, twelve blockchains have been named: BNB (BNB), Binance USD stablecoin (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos Hub (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS,) and Coti (COTI). There may be more beyond this list.

What is particularly disconcerting is the visibility of many of these potentially problematic instruments under the auspices of the W3C logo, particularly in the DID method registry: https://w3c.github.io/did-spec-registries/. It's worth noting that many of these also finance standards work.

In securities law, the attitude of "If you think something is illegal, don't use it" is insufficient. The potential risk here is that W3C's reputable image could be tainted by these developments. Urgent action is required to rectify this situation.