Does the nature of the crypto, stock or commodity, really matter?

[KryptoBull]

2023 has been marked by a flurry of SEC lawsuits targeting entities in the crypto market, including Ripple Labs^[1], Kraken^[2], LBRY^[3], Binance^[4], and more. The most recent suit, involving Coinbase^[5], has captured the attention of the investment community. While I am not a legal expert and have limited understanding of how the SEC regulates the stock market, I can sense a widespread sentiment within the crypto community opposing SEC oversight and favoring regulation by the CFTC.

The crypto community's stance appears to be driven by a desire for regulation that is more attuned to the specific characteristics of the crypto market and less antagonistic towards its growth. They view the SEC's approach as overly burdensome and stifling, hindering innovation and progress. Instead, they advocate for the CFTC's involvement, which is seen as more sympathetic to the crypto industry's unique nature and better equipped to facilitate its growth.

Despite the prevailing sentiment, there remains a lack of clarity regarding the underlying issues fueling the SEC's actions and the crypto community's resistance. The ongoing legal battles have left us in a state of uncertainty, unsure of how these developments will impact the future of the crypto market and our investments in it.

It would be great if you could share your insights:

• Is the nature of crypto (stock or commodity) really important to you?
• You want crypto to be regulated by the SEC or the CFTC?
• Why do you want that result?
• How will the opposite result (if any) affect your investment in the crypto market?

Refecences:
[1] The SEC vs. Ripple lawsuit: Everything you need to know
[2] US SEC sues Kraken crypto exchange over failure to register
[3] Crypto Firm LBRY to Challenge Ruling It Violated U.S. Securities Law
[4] Binance Has No Real Argument for Dismissing SEC Suit, Regulator Says
[5] Coinbase and SEC Dig in With U.S. Judge on Whether Securities Law Applies to Listings

[MrSpasybo]

• Is the nature of crypto (stock or commodity) really important to you?
• You want crypto to be regulated by the SEC or the CFTC?
• Why do you want that result?
• How will the opposite result (if any) affect your investment in the crypto market?

I don't like Gary Gensler, even though under his watch the BTC Spot ETF was approved! Gary Gensler wants to regulate the crypto market, he wants to have a lot of power and I believe there is a rational interest involved in that. Maybe he is helping traditional companies slow down the development of crypto to help them gain more market share!

1. That's why I don't want crypto to be a security, and this issue is very important.
2. Crypto should be a commodity or a new asset. If I had to choose, CFTC is better for crypto!
3. CFTC does not sue crypto companies and projects, CFTC can help the crypto market grow stronger.
4. If a token is determined to be a security, it will lose the opportunity to increase in price. XRP is a typical example: XRP fell under the SEC lawsuit and missed the cycle 2020 😳

[IyemRoker]

It would be great if you could share your insights:

• Is the nature of crypto (stock or commodity) really important to you?

Cryptocurrency is very important to me, that's why I continue to stay on altcoinstalks forum.
SEC, CFTC or whatever the financial institution is, I don't care because cryptocurrency must remain as it is now, unstable and have many different features from Fiat etc.
Cryptocurrency remains cryptocurrency and there is no need for regulation from various financial institutions because that would only provide intervention to the cryptocurrency itself.
I like that cryptocurrency remains as it is now, the price changes irregularly and it is difficult to predict whether it will go down or up and is independently owned by the person who owns the Private Key itself.
[/list]

[KryptoBull]

I don't like Gary Gensler, even though under his watch the BTC Spot ETF was approved! Gary Gensler wants to regulate the crypto market, he wants to have a lot of power and I believe there is a rational interest involved in that. Maybe he is helping traditional companies slow down the development of crypto to help them gain more market share!

1. That's why I don't want crypto to be a security, and this issue is very important.
2. Crypto should be a commodity or a new asset. If I had to choose, CFTC is better for crypto!
3. CFTC does not sue crypto companies and projects, CFTC can help the crypto market grow stronger.
4. If a token is determined to be a security, it will lose the opportunity to increase in price. XRP is a typical example: XRP fell under the SEC lawsuit and missed the cycle 2020 😳

Oh, I forgot what happened to XRP when it was sued by the SEC and threatened to become a security. XRP is a very potential token and grew strongly in 2017 but could not create an ATH in 2021, eventually it was classified with the group of dino-coins and forgotten-coins. If the majority of tokens in the market are accused of being securities, we could see a market collapse. Only BTC and ETH are not enough to create a vibrant market like the current one!

I also thought of a new form of asset that Congress could accept: crypto is not a commodity or security, crypto is crypto and needs a separate management agency, not the SEC or CFTC.

Cryptocurrency is very important to me, that's why I continue to stay on altcoinstalks forum.
SEC, CFTC or whatever the financial institution is, I don't care because cryptocurrency must remain as it is now, unstable and have many different features from Fiat etc.
Cryptocurrency remains cryptocurrency and there is no need for regulation from various financial institutions because that would only provide intervention to the cryptocurrency itself.
I like that cryptocurrency remains as it is now, the price changes irregularly and it is difficult to predict whether it will go down or up and is independently owned by the person who owns the Private Key itself.

I agree with the independent and self-custodial nature of crypto, but currently governments want to manage crypto to collect taxes to enrich their budgets.

We are interested in the US government's perspective because the US is the largest economy globally. Currently, the issue of whether crypto is a commodity or a security is very hot, we cannot hide from this issue, we need to fight with the SEC to protect the crypto market!

[electronicash]

I don't like Gary Gensler, even though under his watch the BTC Spot ETF was approved! Gary Gensler wants to regulate the crypto market, he wants to have a lot of power and I believe there is a rational interest involved in that. Maybe he is helping traditional companies slow down the development of crypto to help them gain more market share!

1. That's why I don't want crypto to be a security, and this issue is very important.
2. Crypto should be a commodity or a new asset. If I had to choose, CFTC is better for crypto!
3. CFTC does not sue crypto companies and projects, CFTC can help the crypto market grow stronger.
4. If a token is determined to be a security, it will lose the opportunity to increase in price. XRP is a typical example: XRP fell under the SEC lawsuit and missed the cycle 2020 😳

Oh, I forgot what happened to XRP when it was sued by the SEC and threatened to become a security. XRP is a very potential token and grew strongly in 2017 but could not create an ATH in 2021, eventually it was classified with the group of dino-coins and forgotten-coins. If the majority of tokens in the market are accused of being securities, we could see a market collapse. Only BTC and ETH are not enough to create a vibrant market like the current one!

I also thought of a new form of asset that Congress could accept: crypto is not a commodity or security, crypto is crypto and needs a separate management agency, not the SEC or CFTC.

Cryptocurrency is very important to me, that's why I continue to stay on altcoinstalks forum.
SEC, CFTC or whatever the financial institution is, I don't care because cryptocurrency must remain as it is now, unstable and have many different features from Fiat etc.
Cryptocurrency remains cryptocurrency and there is no need for regulation from various financial institutions because that would only provide intervention to the cryptocurrency itself.
I like that cryptocurrency remains as it is now, the price changes irregularly and it is difficult to predict whether it will go down or up and is independently owned by the person who owns the Private Key itself.

I agree with the independent and self-custodial nature of crypto, but currently governments want to manage crypto to collect taxes to enrich their budgets.

We are interested in the US government's perspective because the US is the largest economy globally. Currently, the issue of whether crypto is a commodity or a security is very hot, we cannot hide from this issue, we need to fight with the SEC to protect the crypto market!

SEC i think declared all altcoins are Security to which any altcoin will need to counter SEC after they file a case for each altcoins and if the team doesn't have some resources to fight legal battle for years like Ripple labs. and this is why Cardano CEO was furious when the head of SEC begins to target ADA as Security. 
i think is doing every thing to ask bribe team o developers and if they don't have the deep pockets for legal case, their option could be subpeona and has to settle if possible.

[Dr.Bitcoin_Strange]

It would be great if you could share your insights:

• Is the nature of crypto (stock or commodity) really important to you?
• You want crypto to be regulated by the SEC or the CFTC?
• Why do you want that result?
• How will the opposite result (if any) affect your investment in the crypto market?

Already, most of the altcoins on the market are centralized, so the SEC can actually regulate them if they want. They can force the project owners to have an alliance with them, and the risk of such an agreement is that project owners can actually free their coins from the wallets of any investors, and they could also list them on an exchange that requires investors to pass KYC before they can be allowed to trade their coins. In the process of passing KYC, they will have their privacy information exposed to the SEC or any other government authority for investigation. I am totally in disagreement with such an idea.

These are also some reasons why I have a fear of investing in altcoins and holding them for a long time. What if unforseen circumstances arose? If it happens like that, it could be disadvantaged to investors because they may likely have their identity known.

[IyemRoker]

-

When I noticed the government in the beginning they reached out and ignored cryptocurrency but over time the government also needed cryptocurrency for their income taxes.
From this attention I also feel inferior about the government's behavior, maybe the logic is like thi s: at the beginning he hated it but in the end he needed it.

It's true what you said, we are in a position where we can't hide because the SEC continues to look for loopholes so we can acquire cryptocurrency.
Maybe at the beginning they also provide very strict rules and finally after acquiring cryptocurrency there will definitely be new rules such as trading tax, income tax, etc.

[KryptoBull]

SEC i think declared all altcoins are Security to which any altcoin will need to counter SEC after they file a case for each altcoins and if the team doesn't have some resources to fight legal battle for years like Ripple labs. and this is why Cardano CEO was furious when the head of SEC begins to target ADA as Security. 
i think is doing every thing to ask bribe team o developers and if they don't have the deep pockets for legal case, their option could be subpeona and has to settle if possible.

Thanks to Ripple, we have all realized the nature of Gary Gensler in wanting to manipulate this market. I don't think the SEC wants to do anything related to corruption, it's just that Gary Gensler is working for some big power. The crypto community has shown Gary our power!

Already, most of the altcoins on the market are centralized, so the SEC can actually regulate them if they want. They can force the project owners to have an alliance with them, and the risk of such an agreement is that project owners can actually free their coins from the wallets of any investors, and they could also list them on an exchange that requires investors to pass KYC before they can be allowed to trade their coins. In the process of passing KYC, they will have their privacy information exposed to the SEC or any other government authority for investigation. I am totally in disagreement with such an idea.

These are also some reasons why I have a fear of investing in altcoins and holding them for a long time. What if unforseen circumstances arose? If it happens like that, it could be disadvantaged to investors because they may likely have their identity known.

It's not that simple. To conclude that a token is a security, the SEC needs to prove that the token meets all 4 criteria in the Howey test^[1]. If the SEC can't do that, they can't win the case.
I believe that crypto should be considered a commodity or a new asset in the economy. The Howey test is too old to be applicable to an Internet asset like crypto.

When I noticed the government in the beginning they reached out and ignored cryptocurrency but over time the government also needed cryptocurrency for their income taxes.
From this attention I also feel inferior about the government's behavior, maybe the logic is like thi s: at the beginning he hated it but in the end he needed it.

It's true what you said, we are in a position where we can't hide because the SEC continues to look for loopholes so we can acquire cryptocurrency.
Maybe at the beginning they also provide very strict rules and finally after acquiring cryptocurrency there will definitely be new rules such as trading tax, income tax, etc.

We need clear legal frameworks to manage the crypto market, then everything can develop strongly. The US Congress is still researching, but I suggest they will issue it soon because the BTC spot ETF has been approved and received the participation of traditional investors.
References:
[1] Howey Test Definition: What It Means and Implications for Cryptocurrency

[0t3p0t]

Is the nature of crypto (stock or commodity) really important to you?

Of course if it isn't, no one would waste their precious time to put a trust and invest on it.

You want crypto to be regulated by the SEC or the CFTC?

I am good with regulation it does not matter to me. Though this only works with local exchanges and wallets so it's okay since we can still use non-custodial wallets if we want a full control of our crypto funds so no worries about that.

Why do you want that result?

Yeah all good.

How will the opposite result (if any) affect your investment in the crypto market?

No regulation? Well much better because we are not required to undergo KYC which will possibly compromise our privacy and security. The only drawback here is that crypto might be used in illegal activities and has higher chance of earning negative image from it.

[electronicash]

not sure if there is difference to what CFTC can do especially if the institutions behind Gary will also be there to influence the CFTC. there is always a rob with regulation.

whether security or commodity, the privacy of individuals are at risk.
even today when there isn't yet a real regulation, the governments are already trying to block major exchanges in my country and they already backing an exchange to corner the market in the country. traders like me in our country will have no choice but to register to these exchange otherwise we have no means to turn our coins into fiat.

[IyemRoker]

We need clear legal frameworks to manage the crypto market, then everything can develop strongly. The US Congress is still researching, but I suggest they will issue it soon because the BTC spot ETF has been approved and received the participation of traditional investors.
References:
[1] Howey Test Definition: What It Means and Implications for Cryptocurrency

In this context, I also fully support cryptocurrency regulations in America because that country has a lot of Bitcoin miners and the largest exchanges are in America.
The only problem is that the regulations should not be made difficult because the more they are complicated, the development of cryptocurrency will definitely be hampered and it is certain that this cryptocurrency will dump in price.
Then from the SEC there is also something called checking using the "Howey Test", this checking requires a lot of time, energy and thought to be able to pass, perhaps one of those in the article who has undergone the "Howey Test" is the Ripple coin.

[KryptoBull]

not sure if there is difference to what CFTC can do especially if the institutions behind Gary will also be there to influence the CFTC. there is always a rob with regulation.

whether security or commodity, the privacy of individuals are at risk.
even today when there isn't yet a real regulation, the governments are already trying to block major exchanges in my country and they already backing an exchange to corner the market in the country. traders like me in our country will have no choice but to register to these exchange otherwise we have no means to turn our coins into fiat.

I think the nature of BTC needs to be clearly defined in the US - the world's largest economy, before being considered and accepted in the same way globally. Currently the CFTC has a friendly approach to crypto, while the SEC has a harsh and litigious attitude, I think CFTC will be a better home for crypto.

Your government is also finding ways to regulate (and tax) crypto, perhaps this will be the inevitable future of crypto and investors globally. Crypto will have to become part of the financial market and follow its rules.

In this context, I also fully support cryptocurrency regulations in America because that country has a lot of Bitcoin miners and the largest exchanges are in America.
The only problem is that the regulations should not be made difficult because the more they are complicated, the development of cryptocurrency will definitely be hampered and it is certain that this cryptocurrency will dump in price.
Then from the SEC there is also something called checking using the "Howey Test", this checking requires a lot of time, energy and thought to be able to pass, perhaps one of those in the article who has undergone the "Howey Test" is the Ripple coin.

I hope Ripple's victory will make things simpler because we already have the experience and basis to defend crypto against the SEC. For now I hope that Coinbase and Binance will prevail against the SEC in their lawsuit. Kraken surrendered and paid a fine but they will never escape the SEC, the only way is to fight the SEC