You're right that we should not attempt to code securities into the blockchain, that's not what I was thinking.
Bearer Bonds are basically illegal to issue everywhere, in the same way that all trades they can't federally regulate are illegal.
It seems to me that the difference is that BTC is not a fiat currency, no government has authority over it, so they can't regulate the types of stocks/bonds that people issue in Bitcoins. What they can control is what companies and individuals inside their borders do... and right now I don't think there are any clear laws in this country that govern this. We will only be taking in and distributing BTC, not exchanging BTC for fiat. We will see what the lawyers say, hopefully we can work within/around the laws of this country.
I will keep you updated, hopefully they are able to come up with a feasible plan for us.
Doesn't matter what you use to buy the security in the US, nor what you use for dividends, etc. US definition of a security:
(1) 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 contract, voting-trust certificate, certificate of deposit
for a security, fractional undivided interest in oil, gas, or
other mineral rights, any put, call, straddle, option, or privilege
on any security, certificate of deposit, or group or index of securities
(including any interest therein or based on the value
thereof), or any put, call, straddle, option, or privilege entered
into on a national securities exchange relating to foreign currency,
or, in general, any interest or instrument commonly
known as a "security", or any certificate of interest or participation
in, temporary or interim certificate for, receipt for, guarantee
of, or warrant or right to subscribe to or purchase, any
of the foregoing.
If you're doing anything you see there, you have to be registering it with the SEC. Doesn't seem to care much what currency you're using. Could be swapping cats.
)
Or, more likely they'll all ignore it and go on their merry way.