If they don't want to restrict themselves to accredited investors, they could alternatively adhere to SEC guidelines for selling financial instruments to the public. Clear auditing, GAAP, prospectus including a frank discussion of risks, etc. It's really not that high a bar, considering the $ involved.
You can't ask for no accountability, these rules are written in blood (or red, I guess).
> they could alternatively adhere to SEC guidelines for selling financial instruments to the public. Clear auditing, GAAP, prospectus including a frank discussion of risks, etc.
Imo it would make it worse. Most of widely available standard financial instruments are based on some sort of contractual obligations of responsible parties, assets, operations. Risk analysis has been developing for decades for these instruments, and then enter Gamestop and AMC…
What would you put in prospectus for bitcoin, ethereum, level 2 cryptos or colored bitcoin? Or something like dash or monero? How do you estimate risk and impact of the upcoming ethereum fork?
Using the same guidelines for crypto as for standard financial instruments, will
make it look like one of the known investment interests, while in fact, it is fundamentally different. I would say anyone, who tries to sell you a bitcoin under disguise of investment with some known risk properties is misleading.
You might need to be accredited to invest in a bank that operates on bitcoin, or have all your money parked on an exchange that operates in bitcoin, unless they're willing to do the paperwork. These are things that can and should be audited regularly if they're going to hold a lot of people's money.
YeBanKo|4 years ago
Imo it would make it worse. Most of widely available standard financial instruments are based on some sort of contractual obligations of responsible parties, assets, operations. Risk analysis has been developing for decades for these instruments, and then enter Gamestop and AMC…
What would you put in prospectus for bitcoin, ethereum, level 2 cryptos or colored bitcoin? Or something like dash or monero? How do you estimate risk and impact of the upcoming ethereum fork?
Using the same guidelines for crypto as for standard financial instruments, will make it look like one of the known investment interests, while in fact, it is fundamentally different. I would say anyone, who tries to sell you a bitcoin under disguise of investment with some known risk properties is misleading.
refenestrator|4 years ago
You might need to be accredited to invest in a bank that operates on bitcoin, or have all your money parked on an exchange that operates in bitcoin, unless they're willing to do the paperwork. These are things that can and should be audited regularly if they're going to hold a lot of people's money.