Re: Potential list of securities in the US [was: Unlawful Unregistered Securities, DID and VC]

čt 15. 6. 2023 v 17:06 odesílatel Kyle Den Hartog <kyle@pryvit.tech> napsal:

> Why is this just being brought up now? China explicitly banned all
> cryptocurrencies in September 2021 [1]. If we’re going to impose
> restrictions for a single jurisdiction we should for all therefore every
> did method that relies upon a cryptocurrency should be removed under this
> logic. Do you agree that’s a fair extension of your logic? Or should we be
> more subjectively selective, against the consensus of the DID WG which
> explicitly stated the registries were not to be used in this way? Won’t
> this just lead to a select few number of did methods being allowed based
> upon a non-unanimous definition of legality? Within the US this is still
> being interpreted by the judicial system about whether these even are
> securities.  Globally, there’s a patchwork of legal interpretations. I’ve
> pointed to China’s laws as one example but what about the regulations that
> suggest an immutable identifier is actually illegal under GDPR’s framework.
> Wouldn’t that mean all did methods, blockchain keys, and nostr identifiers
> are illegal and therefore should be unreferencable at W3C? Or are we not
> wanting to slip this far down the slippery slope we’re creating with this
> interpretation?
>

While it's true that regulations vary widely across different
jurisdictions, this discussion is fundamentally about aligning our work
with legal frameworks, particularly those which carry significant penalties
for non-compliance, such as US securities law. Notably, it's not about
proposing that W3C adheres to every regulation in every jurisdiction. That
may indeed lead to an impractical "slippery slope" situation, as you've
outlined.

Promoting potentially illegal activities under the W3C banner is concerning
for a couple of reasons. Firstly, it could be seen as an endorsement or
promotion of these activities, which could lead to an increase in network
effects and, subsequently, an increase in token prices. This could be
problematic as it can be interpreted as a violation of securities laws if
these tokens are deemed unregistered securities. Secondly, doing so could
risk damaging the reputation of the W3C and undermining the transparency
and trust that are critical to its operations.

>
> [1]:
>
> https://asia.nikkei.com/Spotlight/Cryptocurrencies/Chinese-crypto-activity-slows-but-not-dead-despite-ban
>
> On Fri, 16 Jun 2023 at 2:17 AM Melvin Carvalho <melvincarvalho@gmail.com>
> wrote:
>
>> I was looking for a potential list of securities, that may be used
>> improve the did method registry, and closest I came to was this article,
>> there may be better:
>>
>>
>> https://beincrypto.com/full-list-cryptos-securities-sec-lawsuit-binance-coinbase/
>>
>> criteria: an investment of money, in a common enterprise, with an
>> expectation of profit derived predominantly from the efforts of others
>>
>> List:
>>
>> Cosmos (ATOM)
>> Binance Coin (BNB)
>> Binance USD (BUSD)
>> COTI (COTI)
>> Chiliz (CHZ)
>> Near (NEAR)
>> Flow (FLOW)
>> Internet Computer (ICP)
>> Voyager Token (VGX)
>> Dash (DASH)
>> Nexo (NEXO)
>> Solana (SOL)
>> Cardano (ADA)
>> Polygon (MATIC)
>> Filecoin (FIL)
>> The Sandbox (SAND)
>> Decentraland (MANA)
>> Algorand (ALGO)
>> Axie Infinity (AXS)
>>
>> Prominent cryptocurrencies previously declared securities by the SEC
>> include:
>>
>> Ripple (XRP)
>> Telegram’s Gram (TON)
>> LBRY Credits (LBC)
>> OmiseGo (OMG)
>> DASH (DASH)
>> Algorand (ALGO)
>> Naga (NGC)
>> Monolith (TKN)
>> IHT Real Estate (IHT)
>> Power Ledger (POWR)
>> Kromatica (KROM)
>> DFX Finance (DFX)
>> Amp (AMP)
>> Rally (RLY)
>> Rari Governance Token (RGT)
>> DerivaDAO (DDX)
>> XYO Network (XYO)
>> Liechtenstein Cryptoasset Exchange (LCX)
>> Kin (KIN)
>> Salt Lending (SALT)
>> Beaxy Token (BXY)
>> DragonChain (DRGN)
>> Tron (TRX)
>> BitTorrent (BTT)
>> Terra USD (UST)
>> Luna (LUNA)
>> Mirror Protocol (MIR)
>> Mango (MNGO)
>> Ducat (DUCAT)
>> Locke (LOCKE)
>> EthereumMax (EMAX)
>> Hydro (HYDRO)
>> BitConnect (BCC)
>> Meta 1 Coin (META1)
>> Filecoin (FIL)
>> Binance Coin (BNB)
>> Binance USD (BUSD)
>> Solana (SOL)
>> Cardano (ADA)
>> Polygon (MATIC)
>> Cosmos (ATOM)
>> The Sandbox (SAND)
>> Decentraland (MANA)
>> Axie Infinity (AXS)
>> COTI (COTI)
>> Paragon (PRG)
>> AirToken (AIR)
>> Chiliz (CHZ)
>> Flow (FLOW)
>> Internet Computer (ICP)
>> Near (NEAR)
>> Voyager Token (VGX)
>> Nexo (NEXO)
>> Mirrored Apple Inc. (mAAPL)
>> Mirrored Amazon.com, Inc. (mAMZN)
>> Mirrored Alibaba Group Holding Limited (mBABA)
>> Mirrored Alphabet Inc. (mGOOGL)
>> Mirrored Microsoft Corporation (mMSFT)
>> Mirrored Netflix, Inc. (mNFLX)
>> Mirrored Tesla, Inc. (mTSLA)
>> Mirrored Twitter Inc. (mTWTR)
>> Mirrored iShares Gold Trust (mIAU)
>> Mirrored Invesco QQQ Trust (mQQQ)
>> Mirrored iShares Silver Trust (mSLV)
>> Mirrored United States Oil Fund, LP (mUSO),
>> Mirrored ProShares VIX Short-Term Futures ETF (mVIXY)
>>
>> These instruments should not be promoted under the w3c banner, imho
>>
>