Advertisement
AD

Main navigation

Polkadot Crypto DOT No Longer Security: "Token Has Morphed"

Advertisement
Sat, 5/11/2022 - 14:15
Polkadot Crypto DOT No Longer Security: "Token Has Morphed"
Cover image via unsplash.com
Read U.TODAY on
Google News
Contents
Advertisement

Daniel Schoenberger, сhief legal officer of Web3 Foundation, a non-profit behind the development of Polkadot (DOT) and Kusama (KSM) platforms, shares a crucial update on the DOT token status.

DOT token is software, not security: W3F

In a publication shared by the W3F main blog yesterday, Nov. 4, 2022, Schoenberger announced that Polkadot's token DOT has morphed and is not a security any longer.

According to his statement, the representatives of W3F spent almost three years in discussions with the U.S. Securities and Exchange Commission (SEC). They were working to make the DOT status and usage compliant to all requirements of the Framework for "Investment Contract" Analysis of Digital Assets by SEC's Financial Hub.

Ideologically, this policy stress tested the proactive approach in the interaction between cryptocurrency projects and regulators in the U.S. Three years of talks between entrepreneurs and watchdogs pioneered this modus of conversation:

As we saw it, the stakes were high, and the margin for error was slim. Whatever it took in order for DOT, the native token of the Polkadot blockchain to be — or to become — a non-security, we were willing to do it. And so, we decided to try to take the SEC's FinHub staff up on the offer to "come in and talk to us."

Over the last three years, the role and functionality of DOT have transformed, or "morphed." As such, by November 2022, the token is not a security any longer: it merely looks like "software."

As covered by U.Today previously, the U.S. has the most severe laws when it comes to unregistered security offerings. Numerous cryptocurrency heavyweights, including Ripple, FTX and Celsius, were under fire due to the unclear statuses of their cryptos.

Former Acala (ACA) director: BTC, DOT are the only cryptos that are not securities. Is this true?

The Polkadot (DOT) community welcomed the announcement by Schoenberger. Robinson Burkey, former growth director of Polkadot's DeFi hub Acala Network, highlighted that DOT is the first ever altcoin with such an impressive status.

Meanwhile, his statement was slammed by aggressive "soldiers" of the XRP Army: they stressed that the SEC did not confirm the non-security status of DOT.

Also, some of his followers recalled that back in 2020, Blockstack PBC filed a Form 1-U report with the SEC to confirm that the Stacks (STX) token was not a security.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Zircuit, New ZK-Rollup Focused on Security, Launches Staking Program
AI Analysis Launches The AIA Mastercard – The Future of Crypto-Fiat Transactions
VAP Group hosts the majestic Global Blockchain Show 2024 in Dubai
Digital Transformation Week Is Returning to Santa Clara This Summer
Arab Financial Services (AFS) Enter Strategic Alliance with Xpence to Innovate SME Financial Management in Bahrain
Breaking Records: UXLINK Attracts 978,000 New Web3 Wallet Registration with $78,000,000 Deposit asset from February 01 to February 22, 2024
What To Expect from The Bitcoin Halving in April 2024
Testnet Launch for dWallet Network - Composable Modular Signature Network
ETH Denver Top Builders Base by Supermoon, Cointelegraph, NDC, Horizen, & Conflux
Citrea, Bitcoin’s First ZK Rollup, Announces $2.7M Seed Funding
Chromia’s Flagship Game ‘My Neighbor Alice’ Unveils 2024 Roadmap
First-Ever ICO on Bitcoin Blockchain: $3.1M Raised in Under 6 Days
CoinList to Host the MASA Token Public Sale as it Unleashes the World’s Personal Data Network
Sui Reveals Initial Wave of Speakers, Famed Venue for First Annual Basecamp Event
Vitalik Buterin Comes to Taiwan as Keynote Speaker at ETHTaipei 2024
Elevating Europe’s Crypto Hub: Next Block Expo Returns to Poland
Bridging the Data Trust Gap: 2024 RegTech Confab Set to Unlock Africa’s Economic Potential
ApeX Protocol Partners with Alertatron to Enhance Automated Trading Capabilities
TeachMeCode Institute Announces Grand Opening of Cutting-Edge Dubai School
RHUNA Launches to Revolutionize the Events and Entertainment Industry with Fintech Innovation
Our social media
There's a lot to see there, too

Popular articles