The SEC, The ICO, and You
Plutus
153

Iconomi’s contract provision is a paper mache shield. It will not even slow down a Sovereign should it choose to start exercising its police powers against DAO or iconomi. Here is why:

How and when a Sovereign exercises its police powers will be at the boundary of where (a) the virtual world is forced to come into contact with, (b) the tangible world.

Local Sovereigns will insert themselves (a) when and where digital assets are converted to tangible assets either directly or through fiat currency (the banking system), and (b) the physical location of where tangible people eat, live and breath. They are actually starting to do that today.

See generally Kim Dotcom who has never set foot, or held any assets in the United States, and never violated the laws of New Zealand. https://en.wikipedia.org/wiki/Kim_Dotcom

See also https://www.theverge.com/2017/7/20/16003046/alphabay-takedown-hansa-marketplace-fbi-europol-sessions

“ The on-site inspections of Chinese bitcoin exchanges” https://news.bitcoin.com/regulations-chinese-bitcoin-exchanges-expected-june-withdrawals-follow/

And also: https://www.quora.com/Can-the-blockchain-and-smart-contracts-enable-decentralized-bond-and-stock-markets/answer/Curt-Sahakian-Attorney

An interesting on point article: https://arstechnica.com/tech-policy/2017/07/using-a-blockchain-doesnt-exempt-you-from-securities-regulations/

Last but not least: https://arstechnica.com/tech-policy/2017/07/officials-arrest-suspect-in-4-billion-bitcoin-money-laundering-scheme/

If they can take down dark web markets, they can take down blockchains. The block chains are be definition public and all their transactions are public. That isn’t a bad starting point. You can laugh at Sovereign technological incompetence, but they can easily outsource their work, much as they do with zero day exploit.

There are ways to accomplish much of what blockchain supporters want to accomplish. Thinking you are too smart for the “Man” and scoffing at the need “No Stinkin lawyers” isn’t likely a sustainable plan.

Don’t forget that Kim Dotcom did very well for himself… until he let his arrogance get the better of him.

If anyone would like to carry on this discussion off-line I would welcome them. See https://www.linkedin.com/in/curt-sahakian-2a0b9/

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