This is easy stuff. People in crypto don’t like it, but that’s because they are wrong. More specifically, they have an intuition like “if a crypto platform pays you interest on your crypto deposits and uses them to make loans, that is like a bank account, and a bank account is not a security.” But that’s because IT’S A BANK ACCOUNT. Like:
Securities regulator: Your Earn product is a security and needs to be registered with us.
Crypto platform operator: That’s ridiculous, Earn is just like a bank account, that’s not a security.
Banking regulator: Hi! I couldn’t help overhearing. Did you just say that YOU WOULD LIKE US TO REGULATE YOU AS A BANK?
Crypto platform operator: [screams, dives out window]
‘Enforcement 40’ for 2020
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