The CEO of Dash Core-Ryan Taylor was in conversation with the U.S. Securities and Exchange Commission (SEC) on the Dash News podcast. In the conversation, the company was discussed from a regulatory standpoint. Taylor explained that the decentralized currency’s case is solid when he pointed out that the company has “extraordinary strong legal” that supports how Dash is ‘not’ security.
Taylor further pointed at the very slow pace at which SEC comes to a decision. In such a situation where the company is trying to get a ‘no-action’ letter from SEC, a long wait can be anticipated as per Taylor. He based his argument on the issuance of a no-action letter for the ‘coupon for flights.’ He underlined the obvious factor in identifying the coupon for flights not as security that he added-
a first-year law student could easily identify that it was not a security, yet it took them 54 phone calls and something like 10 months to get that no-action letter. I anticipate the more complex situations are going to take even longer.
Active inquiry by SEC around Dash, and the possibility of delay in issuing the no-action letter:
On the front where Dash has already been launched in the market and is up and running, Taylor thinks that SEC would take even more time for issuing a ‘no-action’ letter, as he thinks that “SEC hates to issue them after an asset has been issued.” Although he further added that before October, when the company applied for the issuance of the ‘no-action’ letter, SEC went around to ask all those exchanges where Dash was supported as a cryptocurrency. At that time SEC was particularly active about inquiring about the legal viewpoint of the various exchanges on whether Dash can be considered as a security or not. During this phase of time, Taylor mentioned that for about a month, they got many inquiries from the exchanges who were contacted by SEC for the investigational legal purposes. He further added-
[…] Now, luckily, by that point in time we had already done most of the research and were able to share summaries of the legal opinions that we had developed at that point. And so we were able to help a lot of them out on kind of a one-on-one basis. But the SEC was very active, and they were becoming active not just with Dash, but with many cryptocurrencies.
When Dash Core had a meeting with SEC:
Further, Taylor thinks that the issue around Dash is now settled. He said that after submitting the latter, in the next month, Dash’s CFO- Glenn Austin and him met with the SEC officer in Washington, DC. He described the meeting as ‘tables of people’ were ready with several questions to analyze the situation in a very detailed manner. Many questions were inspired by the “gotcha” ambition, as per Taylor.
The silence after the meeting:
After the detailed meeting, there have not been any more inquiries from the SEC side. Taylor thinks that the meeting has satisfied all kinds of concerns, doubts, and inquiries. He further added that post this meeting, Dash has had a few interactions with the SEC but maintaining their engagement demanded a lot of effort from the Dash team.
The positive interpretation of the silence:
He feels that at this point, SEC doesn’t want any engagement, and he said that they don’t “view Dash as security.” This is the reason why going ahead with the process has been challenging for SEC. He feels that at this point, SEC doesn’t feel much of a concern with the company.
What if Dash were to be declared as security?
This would mean a lot of regulatory burden on both Dash and all the exchanges who are supporting the crypto. This may further lead to dropping to list Dash from various crypt exchanges due to the complexity involved. But, on the other hand, if the crypto gets declared not as a security, this might give a steep growth to the crypto and present it many more opportunities.
Others who have suffered the mar of getting declared as security:
Dash’s future still looks bright, but what about those who were declared as security by the SEC? One such example is of Decred. Decred got restricted from Poloniex recently. Many other crypto coins have faced this kind of hardship. To fight such hardship, Kind Foundation has recently started ‘Defend Crypto Fund.’