At a time when the SEC is battling Ripple over whether XRP is a security, one legal expert examined the possibility of a similar crackdown on DOGE, Cardano, XRP, Polkadot, and Uniswap.
DOGE is the safest because it did not have an ICO, but Cardano is also safe because its token sale took place outside of the United States – Polkadot is in jeopardy.
For almost six months, Ripple Labs and the US Securities and Exchange Commission have been fighting in court over whether XRP is a securities. Many investors have begun to wonder if their favorite token could also be a security as a result of this. One expert has the answers, and while Dogecoin and Cardano holders are safe, Uniswap and Polkadot holders are not.
Attorney Jeremy Hogan examined how the US Howey Test, which assesses whether an item is a security, is applied to several of the most popular cryptocurrencies. He’s looked into Bitcoin, Ethereum, Binance Coin, Tether, and Ethereum in the past. Binance Coin and Tether are very certainly going to be categorized as securities, and Ethereum 2.0 isn’t far behind: Expert in law
Hogan focused on Cardano, DOGE, Uniswap, Polkadot, and XRP this time.
Cardano and DOGE are both safe to use.
Cardano and DOGE have grown in popularity and value to become two of the most popular cryptos. Cardano holders can relax because the SEC is unlikely to be interested in it.
Cardano’s decision to sell its ADA coins solely in the Japanese market, according to Hogan, was a brilliant move. The lawyer noted that “about 95% of the ICO was to Japanese nationals.” The ADA would then make its way to America via exchanges. The SEC will be unable to pursue Cardano as a result of this.
Cardano received a 2.5/10 SEC hazard rating from him.
It’s even better for memecoiners – DOGE holders – than Cardano. Within a week of the project’s inception in 2013, 5% of DOGE coins had been mined. After a year, 95% of the DOGE coins had been mined.
I believe that suing a joke coin will simply make the SEC look even more ridiculous, so I don’t anticipate any issues.
DOGE received a 2/10 SEC hazard rating from Hogan.
Polkadot and Uniswap are in jeopardy.
The lawyer then moved on to two of the industry’s most interesting projects: Polkadot and Uniswap.
Polkadot’s issues derive from the Web3 Foundation, which founded the project and raised more than $200 million. The Foundation sold part of the tokens before the DOT token became online, further damning the case. This suggests that early buyers expected the Foundation’s activities to have an impact on the DOT price. Polkadot is now firmly on the SEC’s radar.
Polkadot’s saving grace is that the Foundation is a non-profit, making the SEC’s wrath less likely to fall on it. The project also claimed in its early paperwork that it would not sell DOT tokens to Chinese or American investors.
Polkadot is rated as a 5/10 danger by the SEC.
It’s a mixed bag for Uniswap. In the past, Stephen Palley, a Washington-based attorney, has declared that Uniswap’s UNI token “is almost probably a security.”
Uniswap was fortunate in that the UNI tokens were never sold and were instead distributed in an airdrop. As a result, if Uniswap Labs ever loses to the SEC, it will have no profits to disgorge. As a result, it is an unappealing proposition for the watchdog.
The SEC gives Uniswap a 4/10 for danger.
Hogan, Jeremy/n
