Guys what if we made an ethereum-based investment bank?

>>3400604
the sec would shut you down within 30seconds

>>3400636
But it's not a security :^)

You'd be breaking a handful of securities laws in the US if you didn't have the proper liquidity ratios, management team qualifications like certain people that do certain things must take tests and pass them, Serious 7, 6, 28, ect. You'd have to register the offering with the SEC which would cost 20k up front in legal fees. Register as an Investment Company. Provide shit ton of risk disclosure.

You'd then have to audit the company every quarter, making the filings available to the public. 50k/quarter for the audit. There are also filing fees. I'm probably forgetting a lot.

>>3400656
>if it was created in the US

What is Bermuda

>>3400656
But coins aren't securities so that's a bunch of noise.

>>3400656
lol americans

>>3400656
>assuming we are all usa cucks

>>3400667
>>3400668
>>3400675
>>3400682
lol. Just saying, a lot of /biz/ is american.
If it's not in America, then the company could not do business with any American. Otherwise the SEC could establish minimum contact and take the whole thing down, no matter where it was in the world.
>>3400668
> ethereum-based investment bank
Is this some sort of ECR20 token? Those are almost always securities. even some of the ones whose creators say otherwise. The token needs to be pure utility for it not to be a security. Would you be creating a coin that trades on an exchange? It's probably a security.

Just the fact that it would an investment bank opens you up to a book full of regulation outside of it being or not being a security.

>>3400718
>If it's not in America, then the company could not do business with any American.
>Otherwise the SEC could establish minimum contact and take the whole thing down, no matter where it was in the world.

Imagine knowing this little about how crypto works. Pmsl. Enjoy your negative interest in your current account.

>>3400756
I'm not a no-coiner.
There are cases of the SEC pulling down foreign organizations by establishing minimum contact all over the internet. Google them.

I'm speaking on a strictly on legalities here. Not saying that this already doesn't happen.

>>3400718
>Otherwise the SEC could establish minimum contact and take the whole thing down

You fucking retard...

>>3400773
So you invested in crypto with no knowledge of how the ecosystem works. Wew

>>3400785
Apparently Biz doesn't know a lot about SEC regulation or SEC cases. I guess that's what I get for being a CPA that browses biz.

>>3400800
>CPA

In fucking tears.

We're not in Kansas anymore toto

>>3400636
How exactly does the SEC demand a smart contract stop executing?

If one could write a smart contract that fully describes all required functions, then how can it be stopped even if it was deemed to be illegal?

>>3400806
kek

>>3400806
>company starts outside the US as an investment bank and issues a Token that's clearly a security
>does biz with 5000 US costumers
>follows 0 regulations

Please tell me how that will go well? Or how it being crypto suddenly protects the organization from everything? Or at least how I'm being ignorant here? Because either I'm being ignorant or this thread doesn't know anything about how the SEC prosecutes outside its boarders.
The US participants would be liable for breaking securities laws simply by participating. the SEC would try to use minimum contact to bring the case in front of a US judge, and attempt to prosecute the company for breaking securities laws as well.

This is not a new thing.

>>3400847
Sorry but the SEC cant shut down smart contracts even if they tried

>>3400899
I have not implied they could. I'm talking about the participants and the organization.

>>3400910
People have been hiding their money for years in all kinds of easy to track ways. Offshore fiat, gold, diamonds, art. Stick a Cartier up your arse and you're good to go.

With the development of crypto such as monero which is more untraceable than any of the above, why do you think the SEC will suddenly become some kind of global watchdog.

Jog on you backstreet accountant.

>>3400899
they can extradite people running them. butterin is so fucked, just wait.

>>3400981
I know that you know not everyone will use monero, and that not everyone does. I was expecting a better answer.
Anyone that touches an exchange and doesn't use a coin like monero is vulnerable in this situation. Yeah, I'm implying that they currently are able to access the personal information of every customer of a few exchanges. Crypto will only become largely untouchable by regulation when it truly becomes decentralized.

>>3401052

Smart contracts are run by the network not a person you idiot

>>3400636
They literally couldn't shut it down if it was made as a proper DAO. We could have tokens made specifically for voting on things like dividend rights and the SEC wouldn't be able to stop it. The worst they could do is say it's illegal to use. Which would be really easy to circumvent in crypto.

>>3400604
What if we all come together and buy the same coin :D

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>>3400604
Don't let your dreams be dreams OP

>>3400604
>investment bank
literally the DAO

you guys are fucking retarded not getting the meme, fucking newfags.

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>>3400604
Guys what if we made an shit-based modern art?