… but what does all that mean?
The idea that ol’ Tom puts forward here is that when most crypto projects start, they are certainties by law.
In general, an investment of money in a company (or “joint venture”) with the expectation that a profit will be made through the efforts of someone other than the investor is considered a security.
That “joint venture” is easy to define when it is a small team of developers selling a crypto token to fund initial development.
But when that small group is no longer in control and everyone in the world can contribute to changes in how the token works, that breaks the very definition of a security.
So here’s what’s suggested, in simple language:
“Hey, why not give these projects a chance to raise money and build for a while…
If they are not decentralized after a certain amount of time, we regulate them as if they were securities.
In this way, American investors remain protected, while the growing blockchain industry in our country is supported.
Sounds good?”