Dash Community Disputes SEC Claim of Dash Being a Security

04/18/2023 04:37 • Daily Digest • 62 views

On April 18th, it was reported that the Dash community responded to the statement by the US Securities and Exchange Commission (SEC) that Dash is a type of security, stating that “there is no reasonable explanation for referring to Dash as a security.” The SEC repeatedly cited the outdated Howey test when treating an asset as a security. This means it needs to have an investment contract and profit expectations from ordinary enterprises. The Dash community refuted this claim, stating that “Dash does not have reasonable profit expectations. This is a payment technique. Miners receive compensation through mining, and the main node receives compensation through operating nodes, but no one receives compensation solely for holding Dash.” The Dash community added that no organization “promises the efforts of others” to improve the agreement. It is managed by the DAO who jointly determine its direction. The rebuttal also pointed out several flaws in the SEC’s argument. （BeInCrypto）

Dash community refutes the SEC’s claim that it is a security: Dash has no reasonable profit expectations and is just a payment technology

Introduction

On April 18th, the Dash community responded to the statement of the US Securities and Exchange Commission (SEC), which claimed that Dash is a type of security. The community refuted this claim, stating that there is no reasonable explanation for referring to Dash as a security.

The SEC’s Criteria for Identifying Securities

The SEC repeatedly cited the Howey test, an outdated legal standard for identifying securities. According to the Howey test, an asset is considered a security if it meets two criteria: it must have an investment contract and profit expectations from ordinary enterprises.

Dash Does Not Meet the Criteria for a Security

The Dash community argues that Dash does not meet either of these criteria. They state that Dash does not have reasonable profit expectations; instead, it is a payment technique. Miners receive compensation through mining, and the main node receives compensation through operating nodes, but no one receives compensation solely for holding Dash. The community added that no organization “promises the efforts of others” to improve the agreement. It is managed by the DAO who jointly determine its direction. Therefore, Dash cannot be considered a security.

Flaws in the SEC’s Argument

The Dash community also pointed out several flaws in the SEC’s argument. First, the SEC did not provide adequate evidence to support their claim that Dash is a security. Second, the SEC failed to account for the unique nature of Dash’s governance structure, which is managed by a decentralized autonomous organization (DAO). Finally, the SEC misunderstood the amount of control that Dash Masternodes have over the network. The Masternodes have the power to make decisions about the network’s direction, but they do not have any control over the price or value of Dash.

Conclusion

In conclusion, the Dash community believes that the SEC’s claim that Dash is a security is unfounded. They argue that Dash does not meet the criteria for being a security, and that the SEC’s argument is flawed. Dash is a payment technique that is managed by a decentralized autonomous organization, and it cannot be considered a security.

FAQs

1. What is the Howey test?
The Howey test is an outdated legal standard used to determine if an asset can be considered a security. It looks at whether the asset has an investment contract and profit expectations from ordinary enterprises.
2. What is a decentralized autonomous organization (DAO)?
A DAO is a type of organization that is run by smart contracts on a blockchain network. It allows for decentralized decision-making and reduces the need for intermediaries.
3. How are Dash Masternodes different from Bitcoin miners?
Dash Masternodes are responsible for validating transactions and making decisions about the network’s direction, whereas Bitcoin miners are responsible for validating transactions and solving complex mathematical problems to earn rewards.

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/daily/17810.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.