Hi People
A new tack on my postings here. I am a Crypto Lover. I don't deal much - I buy and hold those I like.
One thing that has caught my attention lately is the SEC stating it's crack down on ICO's. This, in my opinion, and in law, is disturbing as the SEC has no jurisdiction over Barbie Dolls. Let me explain...
The latest article from https://www.coindesk.com/sec-warns-public-companies-using-icos-pump-stocks/ states that we ought to be careful about ICO's because they are really stock in a company. Mainly this article is warning us that SEC registered companies may USE ICO's (a product of the company - NOT a stock) to raise funds for their businesses and we need to be diligent about investing. This I agree with - Be diligent about the ICO's that are offered. Many are indeed scams and Pump and Dumps. We need to be careful and due diligence is required. Thanks for the warning but I will decide if it is appropriate for me to buy or not buy a product of a company.
The one thing they don't seem to realize is this... Barbie Dolls are not stocks. If I buy stock in Mattel, I own a piece of the company. SEC regulated. If I buy a Barbie Doll, I own a Barbie Doll. If I keep it in it's original packaging and hold onto the doll for some time, it may increase in value. It may not. Either way -The SEC has no jurisdiction over Barbie Dolls.
An ICO is a company offering a product - no different than Mattel offering Barbie Dolls or Hot Wheels cars for that matter. We buy products of that company and either use them or put them on a shelf and hope. Then we trade them like baseball or hockey cards. No SEC involvement whatsoever.
Basically, the SEC is trying to regulate (make us THINK they regulate) that which is outside their Jurisdiction. First by warning us and then by stating they have jurisdiction because they state they do. One thing we don't tend to realize is this:
How is the SEC going to know if any entity buys and holds, or trades Barbie Dolls? They won't. For the same reasons, the SEC has no control over any ICO. Because it is property, not a security. Anyone and their dog can initiate an ICO. For THAT reason - DUE DILIGENCE is highly recommended and don't spend any money you don't want to do without. :-).
Long and short - a stock is a security. A product is nothing more. A coin or token is a product. And a GREAT way to raise money for any cause. SEC can continue to regulate stocks and bonds. Property? - Nope.
Until next time.
Cheers from the Stone Age.