The SEC Guidance Will Never Matter For Monero And XMR “Can’t Possibly Be A Security”, Says Riccardo Spagni
Monero’s Riccardo Spagni just spoke on a few matters regarding the privacy-oriented coin, as reported by AMBCrypto.
He also addressed the SEC’s guidance on digital assets being classed as securities during an interview with Monero Talk.
He addressed the issue of whether XMR can be classed as security.
The Howey Test
The SEC has released a framework on analyzing whether a token can be classed as a security or not.
The framework explained the Howey Test which we mentioned as well a while ago.
The simplest way to determine whether a token is a security or utility token is to use the Howey Test.
This is a short questionnaire that has been created back in 1946 by the Supreme Court.
The Howey Test asks investors four essential questions which can be applied to tokens to determine whether they are securities or not.
- Are You are Investing Money?
- Do You Expect Profits from Your Investment?
- Are You Investing in A Common Enterprise?
- Will You Profit from the Efforts of a Promoter or Third Party?
The host said that a crypto had to be a true open source decentralized protocol and BTC would fall under this category.
Bitcoin and Monero
The host then asked Spagni if it’s the same with XMR especially considering the fact that the project does not have a leader or control.
Spagni responded that the SEC guidance would never really matter for XMR because it doesn’t have a presale.
He also said that the launch of XMR was similar to the one of BTC and addressed another thing that these two have in common – the miners are the ones responsible for its emission since the beginning.
“Monero can’t possibly be a security because a security requires a central issuer to have issued at some of the tokens or whatever upfront and sell them to people,” Spagni reportedly said.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.