Metaverse Capital Corp GBCHF

Crypto Perspective Back in Fall 2018

[Scarmuchi007]

Major investment firms like Fidelity have been worried about getting involved with crypto because their main businesses are heavily regulated.  They have been worried that by selling bitcoin or other cypto products, they might end up violating regulations that apply to their main lines of business.  These concerns are still relevant today and seem to be well-founded.

 

If and when major investment firms are able to sell crypto products to their clients, it would obviously increase the demand for these assets and should lead to higher prices.

 

The SEC has never taken a stance on bitcoin's status as a security, but it was plainly designed to be a payment system rather than a speculative asset.  The SEC relies on a court case from the 1940s, U.S. vs. Howey, to determine what qualifies as a security.  One of the criteria is an expectation of financial profit by those who invest.  However, bitcoin was never marketed by Nakamoto on that basis.  Further, the entire system is so decentralized today that it's hard to argue that investors are relying upon the efforts of a promoter or leadership team.  That is another aspect of the Howey test that likely wouldn't be met.