David Hoffman

So if you take Ether and it becomes a version of staked Ether, that doesn't matter.

magically turn it into a security it's still not a security it's still a crypto commodity also wrapping non-security assets if you wrap an asset you know bitcoin you turn that into wrapped bitcoin in some way that's also not a security this is all clarity that we didn't have previously that we now have it's kind of like wrapping we all intuitively knew that like wrapping doesn't do anything to an asset this is like a technical thing it shouldn't it's common sense

But we still needed them to say the words.

I know because you didn't know whether Gary Gensler was going to drop a Wells notice on you just because you wrapped a token or you received an airdrop.

They also touched on the Howey test too.

That's right.

And this is very similar to the XRP, sorry, the Ripple versus the SEC case, which is basically before you released XRP and you made these investment contracts, Ripple was a security.

But then it turned into a commodity once the network was launched, once the managerial efforts were concluded, and once it was available on the market.

It's almost like, and this was the judge's position, the asset itself was never the security, just the deal around it was.

So again, more common sense with respect to the Howey test.

But that's not all.

So this was an incredible taxonomy.

Oh wait, there's more.

Yes.

So Kira Atkins also, in his remarks, he provided a, he hoped to provide, so he specified, a safe harbor for token issuers.

So there were three components to this.

Startup exemptions, fundraising exemptions, investment contract safe harbor.

What are these?

So this would have protected something like the original Ethereum ICO, let's say, where you can raise under one of these safe harbors.

And then within 12 months, say it's less than $75 million to raise, you have a path to releasing this as a commodity asset rather than a security.