{"id":506770,"date":"2022-11-05T01:12:00","date_gmt":"2022-11-04T22:12:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/web3-foundation-makes-bold-claim-to-sec-dot-is-not-a-security-it-is-merely-software\/"},"modified":"2022-11-05T01:12:00","modified_gmt":"2022-11-04T22:12:00","slug":"web3-foundation-makes-bold-claim-to-sec-dot-is-not-a-security-it-is-merely-software","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/web3-foundation-makes-bold-claim-to-sec-dot-is-not-a-security-it-is-merely-software\/","title":{"rendered":"# Web3 Foundation makes bold claim to SEC: &#8216;DOT is not a security. It is merely software&#8217;"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2aec591de8e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2aec591de8e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/web3-foundation-makes-bold-claim-to-sec-dot-is-not-a-security-it-is-merely-software\/#%E2%80%9D_Web3_Foundation_makes_bold_claim_to_SEC_%E2%80%98DOT_is_not_a_security_It_is_merely_software_%E2%80%9C\" >&#8221; Web3 Foundation makes bold claim to SEC: &#8216;DOT is not a security. It is merely software&#8217; &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Web3_Foundation_makes_bold_claim_to_SEC_%E2%80%98DOT_is_not_a_security_It_is_merely_software_%E2%80%9C\"><\/span>&#8221; Web3 Foundation makes bold claim to SEC: &#8216;DOT is not a security. It is merely software&#8217; &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvNGU0MmQ3OTMtMDMzOS00MjA4LWJkODUtMzMyNzI0ZDM3OGYwLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4b69a2fe>The entity supporting research and development of Polkadot as well as overseeing fundraising efforts for the blockchain has argued that the United States Securities and Exchange Commission should not consider the DOT token a security under its regulatory purview.<\/p>\n<p>In a Nov. 4 blog post, the Web3 Foundation Team\u2019s chief legal officer Daniel Schoenberger <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/web3foundation\/less-trust-more-truth-polkadots-native-token-dot-has-morphed-and-is-not-a-security-b2a8847a70cc\">said<\/a> Polkadot\u2019s native token (DOT) had \u201cmorphed\u201d and was \u201csoftware\u201d rather than a security. Schoenberger said the claim was \u201cconsistent with the views\u201d it had shared with the SEC following discussions it began in November 2019.<\/p>\n<p>\u201cWhile the Polkadot vision had not contemplated that the blockchain\u2019s native token would be a security, we understood that the SEC\u2019s view was likely to be that the to-be-delivered token would be a security, at least at the time of delivery,\u201d said Schoenberger. \u201cWhatever it took in order for DOT, the native token of the Polkadot blockchain to be \u2014 or to become \u2014 a non-security, we were willing to do it.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Web3 Foundation announces <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Polkadot?ref_src=twsrc%5Etfw\">@Polkadot<\/a>&#8216;s native token DOT has morphed and is software, not a security!<\/p>\n<p>After 3 years of proactive engagement with the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SECGov?ref_src=twsrc%5Etfw\">@SECGov<\/a>, W3F announces a landmark step towards the achievement of Web 3.0, a decentralized, trustless, serverless internet.<\/p>\n<p>\u2014 Web3 Foundation (@Web3foundation) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Web3foundation\/status\/1588593793519210497?ref_src=twsrc%5Etfw\">November 4, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>The CLO said the Web3 Foundation had met regularly with the SEC&#8217;s fintech wing, FinHub, as part of chair Gary Gensler\u2019s long-standing offer to crypto firms to \u201ccome in and talk.\u201d According to Schoenberger, the team developed a \u201cworkable theory of how token morphing may be achieved\u201d for DOT based on the SEC\u2019s concerns and U.S. federal securities laws. <\/p>\n<p>Though the fundraising entity said it \u201cshared this theory many times with the SEC\u201d on DOT not qualifying as a security, it\u2019s unclear whether the federal regulator will respond to the claims seemingly infringing on their purview. The SEC has often used enforcement actions as a basis for regulation \u2014 in July, the regulator specifically identified nine tokens as \u201ccrypto asset securities\u201d in a case against a former product manager at Coinbase.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Polkadot hits all-time high in development activity<\/em><\/strong><\/p>\n<p>Schoenberger\u2019s outright claim that the DOT token should be considered outside much of the regulatory control of the SEC mirrors that of many XRP (XRP) advocates. Ripple is currently engaged in a legal battle with the SEC over allegations the firm, co-founder Christian Larsen, and CEO Brad Garlinghouse raised more than $1 billion through unregistered securities sales using XRP. Ripple\u2019s supporters have argued that the token was not a security and criticized the SEC for overreaching its authority.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/web3-foundation-makes-bold-claim-to-sec-dot-is-not-a-security-it-is-merely-software\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Web3 Foundation makes bold claim to SEC: &#8216;DOT is not a security. It is merely software&#8217; &#8220; The entity supporting research and development of Polkadot as well as overseeing fundraising efforts for the blockchain has argued that the United States Securities and Exchange Commission should not consider the DOT token a security under its&#8230;<\/p>\n","protected":false},"author":1,"featured_media":506771,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvNGU0MmQ3OTMtMDMzOS00MjA4LWJkODUtMzMyNzI0ZDM3OGYwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75168,74898,93542,117,72287],"class_list":["post-506770","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-polkadot","tag-sec","tag-web3","tag-business","tag-security"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/506770","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=506770"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/506770\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/506771"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=506770"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=506770"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=506770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}