SEC won't interfere if there are no regulations on the said project, centralized or decentralized or these projects are allowed to operate within their legal premises.
If we look at the positive side, it's good that they are doing something about crypto-related scams involving those projects. In the first place, people are seeking to help from them whenever got involved in scams so SEC is just doing their part.
A decentralized platform won't have to worry if all things are running smoothly.
Topic: SEC and decentralized projects possibility (Read 151 times)
Obviously they can but you have quoted big factor yourself that for that to happen the project or its owner should be US based so literally it means that outside US it will be safe though i doubt that too and i think we need global favorable legislation for the mass adoption of this crypto and decentralized financial framework.
Technically speaking you can't go after decentralized projects, you can go after the DEV, you can go after the parties involved, you could even go after the exchanges that list it, but you can't go after the currency because currencies are not things you go after. Let's say you found some people doing something bad with dollars, like drug dealers or mercaneries, do you go after dollar or do you go after the people who do bad things with it?
Basically what are they going to do if they could catch the dev, ask him to stop it? When something is out it is out, and even if dev wants to stop it, you might as well decline it as community and go with the old one without problem. Hence a decentralized "coin" can't be stopped after it started, obviously if the whole project users and community wants to stop they could burn it all and stop, but that would require everyone to agree to it and not just SEC forcing them.
Basically what are they going to do if they could catch the dev, ask him to stop it? When something is out it is out, and even if dev wants to stop it, you might as well decline it as community and go with the old one without problem. Hence a decentralized "coin" can't be stopped after it started, obviously if the whole project users and community wants to stop they could burn it all and stop, but that would require everyone to agree to it and not just SEC forcing them.
Decentralized exchanges isn't safe either, your tokens and coins will be safer in your own wallet that you have backup file for, how many decentralized projects are you seeing that actually works as a fully decentralized project? gods aren't the ones building these decentralized projects, they are build by human like you and I, whatever human build can be manipulated by them too, remember we have erase for pencil sake
Nah... that's the point. If you are a part of old crypto users and i guess you are very familiar with the hacked cases that happened with etherdelta and how SEC was accusing the creator of etherdelta too. Etherdelta dead after SEC was taking the legal suit against the creator of etherdelta.
That could be a story to prove that even the decentralization will not save you from the regulators
That could be a story to prove that even the decentralization will not save you from the regulators
I see, that's the reason why I can't access Etherdelta anymore. Those people who think they can hide their assets with the decentralized exchange needs to consider to think of an option because if the SEC suddenly target that exchange and managed to close it immediately, they will have some hard time retrieving their crypto assets. That's why it is recommended to put all of your crypto assets on some trusted hard wallets to prevent this kind of thing to happen. There are also certain rules in the crypto industries where it says "Don't stack your crypto on exchanges" because there are lots of risks and one of them is this one.
My claim may be wrong but still nothing wrong in sharing it, with the way crypto is growing this days regulations may actually comes and as for those saying the SEC can't go after a decentralized project they are damn wrong, there was one decentralized project that SEC hunted and arrest the dev because of some stolen funds or so and I was surprised it's decentralized project, SEC have the power to go after anything crypto as they see fit, atleast not in the USA, your decentralized part won't safe you as far as you remain in the US.
Here is a forbes news talking about decentralized projects in US
https://www.forbes.com/sites/jasonbrett/2020/02/11/sec-commissioner-hester-peirce-talks-safe-harbor-crypto-tokens-decentralization-and-pumping-gas/
Now in US and it may be the same in future of your country as well when governments are forced to regulate cryptos to control its illegal activities. If it is centralized project then the risk is more than DEX, well anyway why people need to launch their projects in US when the government itself against to it? They can simply add more members into their projects from different parts of the world to make it easier for them. Here is a forbes news talking about decentralized projects in US
https://www.forbes.com/sites/jasonbrett/2020/02/11/sec-commissioner-hester-peirce-talks-safe-harbor-crypto-tokens-decentralization-and-pumping-gas/
Traditional Governments can actually be part of the regulation of decentralized projects if they want to. The important thing is that people do not compromise on decentralization, transparency, safety and other good crypto ideals due to regulation. I would challenge developers to retain all the important crypto ideals while being compliant...none should be compromised for the other. I believe this is a challenge that should be solved by developers.
✳Be compliant, but don't violate the good/Important cryptocurrency ideals such as
Decentralization
Transparency
Immutablity
Privacy/Anonymity
Trustlessness/permissionless
Safety
Community Consensus
Deflation
Etc
Projects that meet the requirements should also be very efficient and easy-to-use
✳Be compliant, but don't violate the good/Important cryptocurrency ideals such as
Decentralization
Transparency
Immutablity
Privacy/Anonymity
Trustlessness/permissionless
Safety
Community Consensus
Deflation
Etc
Projects that meet the requirements should also be very efficient and easy-to-use
SEC can easily put the punishment to centralised exchange to make the project die slowly, thats why we need to start to use decentralised exchange more then CEX, and when the market share of DEX can go above CEX we are ready to fight SEC. Now SEC is still can easily shutting us down.
Do you think SEC can't do that on the decentralized exchange site? We know that almost all of the popular dex already published its creator and that's why the regulators can use its power to sue the developers of dex when these developers were involving in the criminal activity. The regulators have more than enough power to did it.
They can obviously go after the founders of projects.
But what the SEC is not capable of ever doing is try and restrict access to/regulate the blockchain itself on which the coin/token is hosted.
In that sense, decentralisation still holds. But of course, alts have varying degrees of centralisation and you'd have to evaluate them on a case by case basis. For instance, if the SEC decides to crack down on more centralised coins such as XRP, their markets would be much worse hit than something like Monero which is a lot more decentralised both from a development and community standpoint.
But what the SEC is not capable of ever doing is try and restrict access to/regulate the blockchain itself on which the coin/token is hosted.
In that sense, decentralisation still holds. But of course, alts have varying degrees of centralisation and you'd have to evaluate them on a case by case basis. For instance, if the SEC decides to crack down on more centralised coins such as XRP, their markets would be much worse hit than something like Monero which is a lot more decentralised both from a development and community standpoint.
If a coin can be taken down by arresting a single developer, it's not really decentralized. If SEC or anyone else tried to do the same with Bitcoin, they would fail, even if they imprisoned multiple Core devs, because Bitcoin development is actually decentralized, contributors from around the world work on its code, and some of them even maintain privacy, so the government wouldn't be able to find them.
So, no, they can't go after decentralized projects, it's just that almost all altcoins are actually centralized.
So, no, they can't go after decentralized projects, it's just that almost all altcoins are actually centralized.
SEC can easily put the punishment to centralised exchange to make the project die slowly, thats why we need to start to use decentralised exchange more then CEX, and when the market share of DEX can go above CEX we are ready to fight SEC. Now SEC is still can easily shutting us down.
Decentralized or centralized SEC can decide to hunt any of these two down if the projects office is in the united states, decentralized won't safe you from SEC, not in the US, and I feel like centralized projects that pass all SEC rules and regulations will be well trusted than other projects in future 
SEC can easily put the punishment to centralised exchange to make the project die slowly, thats why we need to start to use decentralised exchange more then CEX, and when the market share of DEX can go above CEX we are ready to fight SEC. Now SEC is still can easily shutting us down.
yes you're right, DEX is the future of the crypto market. by using DEX, crypto will not be bound by government authorities. but the problem now is that the transaction fees on DEX are very expensive. I hope that in the future transaction fees on the Dapps network, especially Ethereum, can be suppressed. this is very burdensome for those who wish to send only small amounts of tokens. and it is time to develop a cross-chain blockchain, to make the Dapps platform easier. especially DEX, so they can support all coins.
and if this happens, the SEC and all governments around the world. lacks the power to intervene in crypto.
SEC is capable of anything, it's either you come out clean and settle things with them or get crushed, been decentralized won't safe you even if you are not in the US, to me it's exactly what I hoped for from SEC I believe they are the only thing standing against fraud projects and platforms, I wish they keep putting in more effort to stop whatever is not safe for investment
My claim may be wrong but still nothing wrong in sharing it, with the way crypto is growing this days regulations may actually comes and as for those saying the SEC can't go after a decentralized project they are damn wrong, there was one decentralized project that SEC hunted and arrest the dev because of some stolen funds or so and I was surprised it's decentralized project, SEC have the power to go after anything crypto as they see fit
You’re not wrong, what you have said here is true and I have seen cases like that and it proves that you can’t really hide when they are out for you. But I have noticed that they put more focus on the centralized ones, and the only times they go after decentralized ones are when there serious scam issues and things like that, if not they hardly mention them.But anyway, you can’t hide from them unless you’re going to be leaving the US and going to another country. But even in those other countries, if they are serious with security, there’s still no where to hide.
SEC can easily put the punishment to centralised exchange to make the project die slowly, thats why we need to start to use decentralised exchange more then CEX, and when the market share of DEX can go above CEX we are ready to fight SEC. Now SEC is still can easily shutting us down.
Nah... that's the point. If you are a part of old crypto users and i guess you are very familiar with the hacked cases that happened with etherdelta and how SEC was accusing the creator of etherdelta too. Etherdelta dead after SEC was taking the legal suit against the creator of etherdelta.
That could be a story to prove that even the decentralization will not save you from the regulators
That could be a story to prove that even the decentralization will not save you from the regulators
My claim may be wrong but still nothing wrong in sharing it, with the way crypto is growing this days regulations may actually comes and as for those saying the SEC can't go after a decentralized project they are damn wrong, there was one decentralized project that SEC hunted and arrest the dev because of some stolen funds or so and I was surprised it's decentralized project, SEC have the power to go after anything crypto as they see fit, atleast not in the USA, your decentralized part won't safe you as far as you remain in the US.
Here is a forbes news talking about decentralized projects in US
https://www.forbes.com/sites/jasonbrett/2020/02/11/sec-commissioner-hester-peirce-talks-safe-harbor-crypto-tokens-decentralization-and-pumping-gas/
Here is a forbes news talking about decentralized projects in US
https://www.forbes.com/sites/jasonbrett/2020/02/11/sec-commissioner-hester-peirce-talks-safe-harbor-crypto-tokens-decentralization-and-pumping-gas/
Jump to: