Ryan Adams

This is so clear.

United States, Iran, and North Korea.

David, what did they say?

They said, if an issuer makes specific promises of managerial efforts from which buyers expect profits, the offering is a security until those promises are fulfilled.

Interesting.

Until those promises are fulfilled.

So once the promises are fulfilled, then it becomes a commodity?

Right.

The investment contracts was the security, but the token, once it was on the network, is not a security and buying and selling the token does not represent a security transaction.

The deal, yeah, the initial deal, the introduction of the deal where they still packaged up a bunch of extra P and sold it, yeah.

Yeah, so a startup exemption is like an early stage startup.

You don't have to fall under the rules and jurisdiction of the SEC for four years if you raise $5 million or less.

So you do a very simplified disclosure requirement, very lightweight.

not encumbering of small, lightweight startups that need to stay lean.

That's the first one.

Then there's like a second gate, which, okay, if you want to get even bigger and you want to raise $75 million, then you can do a more structured disclosure.

That's like your second tier.

Uh, and you have 12 months to do that.

Uh,

But then you can raise up to $75 million and you have four years to figure out how to make your thing decentralized, distributed, fulfill your obligations if you have any, and then you get to become not a security at the end of that.