Notes from SEC Investor Advisory Committee meeting on Blockchain, Bitcoin and Cryptocurrencies — October 12, 2017

On October 12th, 2017 I went to the SEC to sit in on the Investor Advisory Committee. What ensued was, well quite frankly surreal. I posted the notes below and got a little over 30k views combined views and comments. So I decided to compile them for ease of reference. Original post can be found by clicking on the hyperlinks; which contain all the comments provided.

October 11th, 2017 — Why Regulations are great for #Bitcoin, #Cryptocurrencies and #Blockchain (original post)

As the #SEC positions itself to issue guidelines for cryptos a few things to consider:

  1. The SEC’s “new” rules will look a lot like old rules. The SEC is like an ice cream shop. They may have 31 flavors but they still only sell ice cream. Prepare to be underwhelmed by “#ICO” flavored security rules.
  2. This will be a boom for securities lawyers cause they’re like soda jerks. Their job is to serve ice cream. Brace yourself for lawyers being excited about the new flavor of ICO securities ice cream. In 2018 “SEC compliant” ICOs should expect to pay ~$200k in legal fees. This makes Irwin smile.
  3. Institutional $. Pension, hedge funds, & investment banks can’t wait for ICO regulatory framework. Why? Cause even they know they’d be up a creek for selling unregulated securities to pension and #MainSt.

2018 will be a boom for #DigitalAssetClass. Regulations will solidify a $150B market and push it to be a trillion-dollar market by allowing billions from traditional investment entities to flood into the market. 2017 isn’t the bubble. 2018 is. #DoddFrank #VolkerRule #PropTrading w #cryptos? Lets roll the dice! Ramsey Taylor, Maureen L. Murat, Esq. Faith Obafemi Esq. Amy Y. Wan Tom Goldstein, Eoin Cullina

October 12th, 2017 — Just sitting here w/ JP Parker, MBA at the U.S. Securities and Exchange Commission Investor Advisory Committee. #FinanceNerding a few epiphanies: (original post)

  1. #Cryptocurrencies are an asset. Don’t let the “currency” part throw you. #DigitalAssetClass
  2. Stop acting like technology is new. #DLT is just a new technology. #Blockchain is it’s name.
  3. #OrganizationalChangeManagement — this is what is missing from the DLT conversation.
  4. DLT adoption is an infrastructure journey. A long one for traditional financial groups. Who will have to tackle #Interoperability, #permissioning and #governance.
  5. Cultural resistance. Organizations will resist, people w/in organizations will resist and lobbyist will resist. The human element is the real uphill battle for DLT.
  6. ICO / #tokens are free financing. Cause no equity is given. Not an epiphany just a “duh” moment to reinforce.
  7. CyberSecurity — is DLT hack proof or resistant? More to come on #3, 4 and 5 as that is the future of blockchain. Sean Manion Bjorn Bjercke Ian Balina Portia BurtonBruno Meireles de Sousa KADIR OZGUR OGUZ Jesse Crawford Faith Obafemi Esq. Kevin Allen Victoria Silchenko, PhD Guy Raz

October 14th, 2017 — For Shane Liddell — After 2 days of drinking, further thoughts on the #SEC’s Investment Advisory Committee meeting and what it means for #DLT & #cryptocurrencies: (original post)

  1. If the SEC is struggling to get DLT and cryptos at a fundamental level, WTF is the FDIC doing?
  2. How does the #FDIC stay relevant in a crypto future?
  3. As BTC approaches $6k, what will the Fed Reserve, reserve in a crypto and DLT future?
  4. How much does it take to create 1 #BTC?
  5. This cost is why BTC is like gold. Value is determined in part by cost to mine, refine and use & has finite supply. What can you use BTC & its DLT for?
  6. Permissioned DLTs require a minimum of how many computers & what effect will this have on data center functions?
  7. Infrastructure — DLT is digital transformation at the speed of money markets.
  8. Lawyers v Technerds & the Big Picture. Techies are winning.
  9. Country issued cryptos. What happens when American exceptionalism & the almighty dollar, walk into a bar with #Estonia, #Dubai, #India and other sovereign countries global ambitions? As the political status of the US is questioned on the global stage, so too is the power of the USD. Sanjay Mathew, Victor I, Tomas Ambrazas, Zeena Altalib, ‘Timi Agama, Enrique Martínez, Werner Boehm Velvet

October 16th, 2017 Shane — Finally saw the Gorilla in the room at the U.S. Securities and Exchange Commission Investor Advisory Meeting last week.(originalpost)

I got distracted by Damon yelling at Nancy & Adam. In retrospect, that was subterfuge that distracts from a basic reality.

  1. Bitcoin has a market value greater than Goldman Sachs.
  2. A thing that is owned nor regulated by anyone has a market cap of $100B.
  3. If it’s a ponzi scheme — How’d the regulators let it happen?
  4. If it’s something else, selling unregulated securities — How’d the regulators let it happen?
  5. There were a hundred million opportunities to address it before it grew by a factor of 10.
  6. Rather, instead of actually addressing it in a meaningful manner, Damon yells at guests that there are people at the SEC who know what a contract is. Why? That is the 800 lb gorilla in the room. Now that this “fad” of #cryptocurrencies is too big to ignore,

“How will the Feds address this financial behemoth?”

As regulators sharpen their sledge hammers, lets talk about the surgical approach. I get it that the #SEC, #FINRA and other regulators will need their show of force and authority. But in the world of #DLT what will a sledge hammer actually solve? Phillip Nunn, Jenny Leung, Haddis, Victoria, Sanjay, Deividas, Fernando Garcia

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My name is Samson. I’m a human and an anthropologist. If you agree, like it. If you disagree, please comment and tell me why. Feel free to hit me up on Twitter or Instagram @HustleFundBaby or connect with me on LinkedIn. Finally, I would say thoughts are my own but I probably stole them from a woman.