The more interesting ones, though, are Cardano’s ADA token (No. 7 on the list), Solana’s SOL token (No. 9) and Polygon’s MATIC token (No. 10). The SEC absolutely thinks these tokens are all securities; it said so, in some detail, in court filings this week. But it has not sued Cardano or Solana or Polygon for selling these tokens illegally. I don’t really know why, but any combination of Reason 2 (they are pretty big and entrenched and decentralized, so it’s hard to even know who to sue), Reason 3 (they did follow best practices; Solana, for instance, sold its tokens through a SAFT and filed forms with the SEC about the offering), Reason 4 (so many tokens, so little time) and Reason 5 (it is still early days) is possible. I would probably bet mostly on Reason 3: These are tokens that were issued in securities offerings to raise money for crypto projects, but they weren’t issued in illegal securities offerings. These projects had good lawyers and were launched in a time of sunny optimism for crypto regulation in the US; they tried to follow the law as they understood it, and more or less succeeded.
‘Enforcement 40’ for 2020
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