DOT Is Just a Software, Not Security, Says Web3 Foundation
The institution supporting the development and research of Polkadot and supervising the fundraising endeavors related to blockchain has asserted that the Securities and Exchange Commission of the United States should not label the digital token “DOT” as a security according to its regulatory perspective.
Web3 Foundation Asserts DOT Is Not a Security
A blog post was published on the 4th of November in which Daniel Schoenberger (the chief legal officer of the Web3 Foundation Team) stated that DOT (the local token of Polkadot) had transformed into software and its status was not that of security. As per Schoenberger, the assertion was in line with the views that the platform shared with the U.S. securities regulator after the discussions started by it in November 2019.
Though the vision of Polkadot had not considered that the local token of the blockchain would be termed as a security, he added, they comprehended that the opinion of the SEC was potential that the token to be delivered would be taken as a security. In the words of the executive, they were endeavoring a lot to turn the Polkadot blockchain’s local token into a non-security.
Web3 Foundation specified on the 4th of this month that following the efforts done for approximately 3 years with having @SECGov as a collaborator, the venue has declared the respective milestone to enter the Web3 world that is a serverless, trustless, and decentralized internet. The Web3 Foundation had regularly cooperated with FinHub (the fintech subdivision of the SEC).
The SEC Calls for the Crypto Companies to Discuss the Issues
This was included in the enduring offer of Gary Gensler (the chairman of the SEC) to crypto companies to have discussions. Schoenberger pointed out that the team formed an operable theory regarding how to achieve the token morphing for the DOT token in line with the apprehensions of the federal securities laws and the SEC of the United States. Although the fundraising organization revealed it, the response of the federal regulator is ambiguous.
In July, the Securities and Exchange Commission frequently utilized enforcement operations as the foundation of the regulation. The agency particularly detected 9 tokens to be categorized as securities among the crypto assets during a case confronting Coinbase’s former product manager. The SEC is also fighting a lawsuit against XRP stating that the digital token was traded by its exchange, Ripple Labs, as a security without any registration.
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