Comments by "Kristopher Driver" (@paxdriver) on "The SEC Goes After Crypto Exchanges - Why People are Angry" video.

  1. It drives me crazy you keep parroting the argument that it's unclear of what a security is. SEC has clearly defined it. "The term “security” means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment ... " When you receive money for a stake in a crypto held by a broker that broker is issuing a security for that crypto / blockchain-registry / whatever you call it. That's why eth and bitcoin aren't securities, but custodial wallets for hedged coins are because they're swaps for registered securities. It's defined clearly, their argument is just playing dumb. It's not a legitimate argument at all to anyone who checks what is and isn't a security and the process for registering with the SEC is also clear as even Robin hood could do it - but the reason for caymen hq and us subsidiaries is they know they're doing something illegal and they're actively trying to sideskirt known legislation. The fact they set up the business that way shows they are acutely aware of the limits and restrictions but they're prepared to risk part of the business for the arbitrage opportunity. It's disingenuous to pretend they don't know what is a security, it's very very clear what is, it's just not clear what the first full service security crypto brokerage would look like because they're all playing dumb and waiting to be told how to build a business rather than leading the charge. The difference between bros and CEOs is effort and competence.
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