The SEC is FUD
There is a new wave of technology underway. The distributed, open ledger, or blockchain, is revolutionizing the frontier in banking and contract technology by making security and accountability available through transparency and is becoming the new gold standard, even in its infancy. The decentralized nature of this new wave of technology has presented “challenges for regulators”, as if this wasn’t the intent. To that, I’d like to directly address the current “worries about regulation”, mechanically.
Don’t get me wrong, I could go on and on about how the SEC (Securities and Exchange Commission), not some faceless entity, but specifically the humans working there serve no legitimate purpose. However, I’d only like to do one thing here and that us to dispel some Fear, Uncertainty, and Doubt.
I really don’t care how people label themselves anymore. People lie. The short-form, advertised function of the SEC is to harm those who commit fraud, when found, and that is done fairly well, when actually done. It isn’t very helpful to you as an individual but as an aggregated social good. The ‘side effects’, the natural ramifications of an action, in many cases are the real, unadvertised game and why the regulations really exist. Those are rather harmful to you and the overall societal landscape at large. This is not to say that fraud is a social good. This is to say that on the best days in operation, the humans at the SEC are not really helping anyone but themselves and, by regulatory enforcement, the 1%. That they are mere marginal utility to you and I at a cost far more than we’d pay for if billed is obvious to anyone with half of a critical eye. (BeeitCONeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeect!!!)
The actions of regulators are chasing innovation away from our shores, sending jobs, financial and intellectual capital, and skilled industry leaders overseas. This is not some argument that is only explainable by PhD economists, nor is it hypothetical. One of the processes for a blockchain startup, today, is to decide to operate in the US or not, some of whom leave. This IS harmful to our society, in every way possible, and these humans, with names and addresses, are the direct cause of it. The financial controls that these humans enforce, under the edict of their legislative and executive “legitimacy”, are inhumane to each individual living and looking for prosperous opportunities here and then declaring that a social good. How are you helped by being forcefully not allowed to participate in wealth creation, ever? Yes, there is risk and that risk is an individual decision. Somehow, the insanity of these humans is to assert I may not risk as I see fit with that which is mine? What insanity do these ignorant humans revel in? These people are a walking tariff, financially and intellectually, and it is widely known that tariffs are only for the economically illiterate.
The SEC is not about American well being; it is about funneling American prosperity into a corporate or government coffer under the guise of protecting you from fraud. Frankly, the concept of “the experts knowing what’s best” for you and I has totally worn out it’s credibility and efficacy in America through repeated failures of these charlatans. That is assuming the idea that politicians ever had the wherewithal to ever execute the grandiose nonsense they peddle was ever valid. I challenge.
The SEC humans are ONLY here to control or manage certain aspects of the economy.
-To ensure that some activities will provide tax and/or fee revenue
-To the government and/or to not have a private entity with the mechanical ability to intentionally or inadvertently thwart government policy
-To ensure that competition is essentially not possible save in the prescribed, controlled manner
The SEC performs unarguably questionable acts under the guise of “help”. If it isn’t help, we should imprison every one of them on an island sans electricity; it best be forever referred to as help, for their sake. Economic regulation IS the modality that has created the 1% by ensuring a regulatory state raises a barrier to entry and continued compliance that established corporations absorb with scale, love, and lobby well to have enforced. Without regulations, the dreaded robber barons have no vehicle to arrive on the economic scene. Competition, who knew?
The current ICO/SEC situation is fairly easily summed up: The humans working at the SEC unilaterally redefine that which is a security at will based on the activities they want to tax/control/prevent and are clearly not operating with the goal to protect anyone but their own legal bailiwick, as they have no intellectual one anymore.
The argument/reality here is, from my perch, obvious. The blockchain is disintermediating several processes the governments of the world have controlled for a long time, in some cases forever. The wainwrights lost their livelihood to the automobile; several of the industries that were controlled by the rich and powerful, via government regulation if necessary, are now becoming the modern day wainwrights and they are staring into the oncoming headlights of the future. The panicked and totally incoherent updates, every time someone finds a new way to move around the current regulation and/or definition, are both adorable and indicative of low government employment standards. The problem with a government industry, rather than the wainwrights, is this industry tends to enforce its will by violence. This isn’t an issue against thieves and frauds. However, when the SEC finds fewer and fewer use cases for itself, it’s out making new business with every press release and the world is supposed to watch the conflict-of-interest unfold silently?
This needs to be clear to all of you who are rationally fearful of government agents showing up to steal from you and your businesses and to the irrationally subservient who think government is not a burden on civilization and cheer them on; there are not enough compliance officers, regulators, and rent-a-cops to actually regulate any market. Almost everything these people do is ineffective, save for the propaganda moneyshot that scares people into mass compliance. When people obey, the regulators don’t need to show up.
They also don’t show up when those businesses go thrive overseas. When these so called ‘regulators’ forget that their existence is based off consumer protection, not bailiwick protection, then it’s time to end that organization from receiving public funds. These people are not focusing on companies committing fraud. They are focusing on regulating the American economy. That does not focus on helping the individual prosper, in a similar fashion to the Venezuelan economic methodology I might add.
~The DEA are a flock of violent humans enforcing a disastrous drug war against individual medicinal sovereignty, even after most people realized that this was stupid years ago. This is mostly due to government propaganda.
~The ATF are a flock of violent humans enforcing a disastrous gun war against individual defensive sovereignty, even after most people realized that this was stupid years ago. This is mostly due to government propaganda.
~The SEC are a flock of violent humans enforcing a disastrous regulatory war against individual financial sovereignty, even after most people realized that this was stupid years ago. This is mostly due to government propaganda.
None of these organizations have the logistical wherewithal to regulate all the activity in America, let alone the world. This is evident in the obvious failure in the drug war and should be evident in the gun regulations scene. They are relying on mass compliance and a few perp walks to propagandize, not a “regulated securities industry” to bring market stability, or some other tin-pot ideological outcome dressed in promises of a prosperous future.
To a large, established company, this is an issue. The SEC has access to use other government assets to squeeze people with a lot going on. They can mess with individuals, US CEOs, bank accounts and property, accounts held with banks that have access to the SWIFT system, and physically harm you. For countries that don’t play along, we have SWIFT access to your whole nation, a modern economic hardship though a privilege, or they let the CIA play in your yard.
None of this can be done en masse, mind you, just to the few examples you see on TV. Their presence is an illusion and almost everyone but the American public has caught on.
EX: On their best years, the humans at the DEA didn’t stop 10% of the drugs coming here and the “good guys” knew it all along. Those humans took pay and pension at a known fruitless effort, regardless of the visible and tangible harm. Because you have to pay for it, they just keep doing it. How many of those “brave law enforcement heros” were blowing the whistle on this? An abacus is all you’ll need to keep score of that group, even if you don’t know how to use it. There are more guns here than people. How exactly are these political charlatans ever planning to ‘enforce gun regulations’ or the confiscation everyone fears/craves? They can’t. It’s all a PR campaign to keep you believing in the fantasy and living in the power of illusion that is “the system”.
The milder version of this abject nonsense is what the SEC conjures up two or three times a month to mechanically redefine that which is a security, to not only grasp at some modern relevance but to stifle American economic potential, unless they get their cut. This is even easier for the cud-chewing voter to stomach because there are way fewer bodies and the perp walks look like fried Sckreli; delicious.
But now to my REAL problem, all of you in the crypto space.
I hear so many people giggling happily in one breath about how the decentralized X is impossible to track and in the next breath worry about taxes? Why is everyone pretending that tax and government services are not being disintermediated right now? Why is the response ‘compliance’ when the whole goddamn point of these systems was to prevent these types of interventions? Why the hell is everyone pretending this is not the case? The SEC is going to away in a decentralized world. Not because I say so but because a few million people, the world over, go to work every day to break the systems they are trying to preserve and it just so happens that those people are, without exaggeration, the best in the world at what they do. Yep, Charlie Lee and Dan Larimer vs government clerks. This is a done deal.
Can we all stop pretending, please? While I can agree that the process of fraud prevention may come in the form of an industry-standard, open-source guild or some intelligent self-regulating situation, similar to the comic book regulatory scene, it isn’t coming from these people, either way. What were they doing during Bitconnect? Trying to maximize their revenue by hitting up ICOs for 450k a pop, that’s what. The community was doing, warning, and pulling funds. As usual, when you pay regardless of results, you get government work. We don’t have to debate folks. These people cannot perform the task at hand anyway, by sheer math. Let the waters wash them away into the history books, shall we?
To that I add one more process to the disruptive pool, the ICPromo. I submit that an ICO can be offered to prevent fraud in the way General Mills has not been dealing in securities for 65 years, the box top.
To this you need to have a blockchain with a hardware item inherent to the project or a partnership with a hardware wallet company. The funding for the ICO takes place between learned professionals, who know the scams and sift out the trash, of the hardware suggested above. They fund said ICO. ICO provides pre-mine to distro as promo on items sold, weighted to an intelligent business model. To ensure that this process is truly no purchase required, you can send a self-addressed stamped envelope to the following address to get 1 genuwine ICO toecan. There is no value proposal. Sorry Howe, =(.
Fear not, some government slob will now attempt to tell you that securities do not necessarily require a value exchange but any exchange of any object with or without mass can be deemed an SEC matter because muh pension.
Ladies and gentlemen, the SEC is the essence of FUD and I encourage all you entrepreneurs continue to find new ways to move around these useless troglodytes, like water around a rock. While I am not encouraging anyone to break any laws, I am encouraging you to not structure your ICOs with 48 fraud surfaces; I will now wink at civil disobedience as a virtue. I will also argue that civil obedience is kind of thing one expects from the Brown Shirts, not civilized humans. I find conclusions like that hard to miss. But, Don’t take it from me. Take it from Milton Friedman.