> Regulation D is not an applicable exemption, neither is Filecoin's use of it, because the secondary markets where people are inevitably going to trade them have to be registered broker dealers to legally trade things that admit they are securities
Filecoin appears to be using Rule 506(c) of Regulation D, a § 4(a)(2) exemption. Also, you don't need to be a broker-dealer to issue, buy or sell unregistered securities. (You do need to be one if you're doing those things with others' securities [1].)
> The SEC tried to regulate commodities.
Commodities-trading regulation predates the SEC by over a decade [2]. Every time securities law were written, commodities laws were rewritten [3][4] to explicitly carve commodities out from securities laws. Both agencies compete in the swaps market, due to their shared jurisdiction over securities-based swaps [5][6], but there are deeper reasons behind the CFTC's independence than it making "no fucking sense for commerce." (The short answer has to do with geography and the competing power centers of New York and Chicago.)
> A new framework isn't out of the question
I agree. But it will probably take an act of Congress to do this. In the meantime, some promoters are violating the law.
in your grandparent post, you are still linking the Federal Reserve's deposit insurance regulation, while talking about the Securities Exchange Commission's exempt securities offering regulation.
Classic strawman, I wasn't claiming Regulation D required anyone to be a broker dealer to issue buy or sell an exempt unregistered security. The claim is that reselling it freely requires you to go through or be a broker dealer, unless all buyers are accredited investors.
We've come full circle to the article's point. Barring an act of the Congress, most ICOs are conducting themselves in a way that is, under current law, illegal.
Filecoin appears to be using Rule 506(c) of Regulation D, a § 4(a)(2) exemption. Also, you don't need to be a broker-dealer to issue, buy or sell unregistered securities. (You do need to be one if you're doing those things with others' securities [1].)
> The SEC tried to regulate commodities.
Commodities-trading regulation predates the SEC by over a decade [2]. Every time securities law were written, commodities laws were rewritten [3][4] to explicitly carve commodities out from securities laws. Both agencies compete in the swaps market, due to their shared jurisdiction over securities-based swaps [5][6], but there are deeper reasons behind the CFTC's independence than it making "no fucking sense for commerce." (The short answer has to do with geography and the competing power centers of New York and Chicago.)
> A new framework isn't out of the question
I agree. But it will probably take an act of Congress to do this. In the meantime, some promoters are violating the law.
[1] https://www.sec.gov/reportspubs/investor-publications/divisi...
[2] https://en.wikipedia.org/wiki/Grain_Futures_Act
[3] https://en.wikipedia.org/wiki/Commodity_Exchange_Act
[4] https://en.wikipedia.org/wiki/Commodity_Futures_Trading_Comm...
[5] https://en.wikipedia.org/wiki/Commodity_Futures_Modernizatio...
[6] https://en.wikipedia.org/wiki/Dodd–Frank_Wall_Street_Reform_...
Disclaimer: I am not a lawyer. This is not legal nor securities advice.