So I asked a lawyer what happens to my crypto if the SEC won. This is what they said
3 min read
So real quick, this isn’t legal advice as I’m not a lawyer. But I asked a few in a casual talk about this. I asked
What is the chances of the SEC winning any of these cases or any future case with crypto? Assuming SEC does win, what can I do with my crypto?
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For 1:
They said the SEC is highly unlikely to win any court case. Recent developments in the XRP case shown
In short, when security laws went from state to federal, the federal basically grabbed the general on what states called an investment contract.
What the laws state level in the 1920s basically said (again this is apart of the XRP case).
In short, if there was no contract then it is an asset. Like if you have no way to sue AND WIN if a crypto or whatever pivots. Then it is an asset. The crypto company if it has no legal obligation to the buyer. Then it must be an asset.
Note I got the screenshots from https://www.youtube.com/watch?v=rNUuw2qTbjo
He explained it a good bit more.
Anyways, it turns out everything the SEC said was an unregistered security prior both in and out of crypto. Could be brought to question.
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For 2
If you’re an accredited investor, then it looks like you’re good to go.
But lets point out what is an accredited investor to show how much BS this is. To be one you must meet one of the following.
You must have an average yearly income over $200,000 ($300,000 for joint income) for the last two years or working in the financial industry. You have a net worth exceeding $1 million, either individually or jointly with their spouse. You are a general partner, executive officer, or director for the company that is issuing the unregistered securities. If it is a private business development company or an organization with assets exceeding $5 million. If an entity consists of equity owners who are accredited investors, the entity itself is an accredited investor. However, an organization cannot be formed with the sole purpose of purchasing specific securities.
So basically if you are rich, you can get away with a bunch of things. Where if you’re not rich, then the law is after you. It’s a class system (and seriously. I wonder if challenged if this would hold up in court. Like it seems to be pure discrimination against given classes of people, and in no way prove or disprove if one knows how to make a smart trade)
Anyways, for the 99.999% of us that is a peasant. More than less we are screwed.
You can return it for a full refund from the broker You can keep any interest unless you made income. The income is deducted from the interest You can’t sell it legally You should file a claim against the broker for offering or selling an unregistered security
So more than less, you can get a refund and take the broker to court.
Note: again I’m not a lawyer and this isn’t legal advice. If it turns out the SEC does win any of this. I suggest talking to a lawyer anyways.
submitted by /u/crua9
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