Ethereum Isn't a Security, SEC Says

This is said by William Hinman, Director of Corporate Finance at SEC, at the All Market Summit: Crypto in San Francisco
15 June 2018   1243

The Securities and Exchange Commission of USA (SEC) does not plan to classify Ethereum and bitcoin as securities. This was stated by the director for corporate finance commission William Hinman at the All Market Summit: Crypto in San Francisco, Yahoo Finance reported.

According to the official, if Ethereum and bitcoin were recognized as securities, then, like shares of companies, this would require their registration with the SEC. Nevertheless, Hinmen said, these properties are more characteristic of the product, which, apparently, sends Ethereum to the US Futures Trading Commission (CFTC).

If a cryptocurrency network is sufficiently decentralized and purchasers no longer have expectation of managerial stewardship from a third party, a coin is not a security. Similarly, labeling an investment opportunity as a “coin” or a “token” does not make something not a security.

William Hinman

Director of Corporate Finance, SEC

Earlier head of the SEC Jay Clayton said that bitcoin is not a security.

dOrg to Become The First DAO With Legal Status in US

DAO is a company in which the centralized leadership and hierarchy is replaced by a smart contract
13 June 2019   204

The decentralized autonomous organization (DAO) dOrg based on the DAOstack framework registered dOrg LLC in Vermont, USA. This was the first precedent in the United States, according to law firm Gravel & Shea.

According to the company, the blockchain-based limited liability company (BBLLC) has a legal status, which allows it to enter into agreements and protect the interests of participants in accordance with applicable law.

Note that a DAO is a company in which the centralized leadership and hierarchy is replaced by a smart contract. Decisions in such organizations are made by voting by the participants, which provides consensus.

dOrg asked us to help design a DAO legal wrapper after discovering the potential of BBLLCs. We believe that dOrg is now the first legal entity that directly references blockchain code as its source of governance. Its material operations and ownership interests are managed entirely on-chain.

Oliver Goodenough

Law professor, Vermont Law School and special counsel, Gravel & Shea

dOrg believes that they have made the first step in integrating the DAO format into the existing economy.

Some time ago, Moloch DAO attracted 1000 ETH from Vitalik Buterin, Joseph Lubin, start-up ConsenSys and non-profit organization Ethereum Foundation.