The Web3 Foundation, which supports the Polkadot protocol, has resubmitted its argument that its native DOT token is not a security. In a Twitter thread, the foundation emphasized its efforts to comply with US securities law, as well as US Securities and Exchange Commission (SEC) guidelines on digital assets, stating that DOT had successfully “transformed” and is a software, not a security.
The entity republished an excerpt from a December Twitter Space podcast in which Angela Dalton, identified as a foundation adviser, described how the representatives accepted the SEC’s invitation to meet with them. Subsequently, the editors stated:
“The foundation made sure that the SEC’s full view of the token transformation was addressed, […] as well as taking steps to manage the distribution of the DOT token so that no one individual owns a large percentage of the network, refusing buyouts from venture capitalists interested solely in investment purposes, and promoting the technology but not the token.”
“The foundation is confident that DOT has transformed and it’s not a security. It’s software,” the editors conclude. Polkadot is a multi-chain protocol that had 66 blockchain networks operating on it and its Kusama parachain network as of October. The Web3 Foundation was created by Gavin Wood, co-founder of Etheruem, and published the Polkadot white paper in 2016. It completed its launch in 2020, according to a Medium post.
one/ @Polkadot‘s native token DOT is, and always has been, coordinating software. Following W3F’s announcement on DOT morphing into a non-security, read the thread below to learn how DOT was able to morph, what Polkadot is, and the primary goals of the network. pic.twitter.com/sAnU56GnIh
— Web3 Foundation (@Web3foundation) January 26, 2023
“Our experience has been positive,” says the foundation in the post. “The SEC has welcomed meetings with the Web3 Foundation, and there has been a spirit of open communication and dialogue.”
The foundation first declared DOT not a security in November 2022. His stance has apparently not received confirmation from the SEC. The Foundation Argument echoes key points from the SEC’s case against Ripple. The transformation is a concept raised in the speech that former DSEC official William Hinman gave at Yahoo Finance’s All Markets Summit in June 2018.
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