- Cannot use tokens as incentive mechanisms or use them for a platform to accrue value (expectation of profit, SEC vs LBRY)
- All transactions on Ethereum fall under US jurisdiction (SEC)
- But somehow Ethereum, which did an ICO, has a Foundation etc. is NOT a security (SEC)

👇

Freedom fighter. Prev. @aragon cofounder (took DAOs from $0 to $30bn AUM). luis.com

This is highly contradictory. Although none of it really matters if everything on Ethereum apparently falls under US jurisdiction (why even care about Howey test then?).

So, where do we go from here? None of this makes sense.

Their reasoning is that ETH is not a security because it’s “sufficiently decentralized”. E.g. if one dev team stops, another one will pick up development.

But that wasn’t always the case, it took time. DAOs help get there. But governance is now a liability (CTFC vs Ooki DAO)