FailsBothProngsLagrange@Opacity

> Public chains don't work directly because of compliance This assumes that compliance is not compatible with permissionless public blockchains. Hypothetically, if someone figured out how to thread the needle and combine both properties together, you’d agree it would win right? (Assuming it’s amenable to a good UX)

Everything in this essay is correct — but take it one step further and you'll land at an unexpected conclusion. Consumer crypto solved "don't trust corporations." Guess what? Corporations don't trust corporations either. Every major bank wants shared infrastructure for payments, settlement, tokenized assets. None will accept a competitor controlling it. That's why consortium projects die. Someone always ends up holding the keys. Public chains don't work directly because of compliance and privacy. Consortium chains don't work because every bank has seen this movie before. Early incumbents set the terms, late joiners absorb the cost. Nobody wants to join someone else's network. The only remaining option is to execute in a controlled environment but anchor the results to a settlement layer that no participant, and no future coalition of participants, can ever capture. That's what Prividium does on Ethereum. An Ethereum account gives a consumer assets no corporation can seize. Prividium gives an institution a controlled environment on shared rails no counterparty can capture. Prividium is for enterprise users what an Ethereum account is for individuals.

@malekanoms You nailed why permissioned chains can’t do real tokenization. But what if you could do KYC on a permissionless chain without the chain ever knowing who anyone is?

@_TomHoward @lex_node @HesterPeirce @SECPaulSAtkins You can have a onchain transfer agent (the SEC has already approved) enforce transfer restrictions on holder limits programmatically. Separate issue from trading w/o intermediaries.

@EulerLagrange @lex_node @HesterPeirce @SECPaulSAtkins What happens when you cross 2000 holders of record?

This document codifies what the consensus among lawyers has already been for years. Good to write it down, but nothing new here. Where are the EXEMPTIONS we were promised and so desperately need? Current rules HANDCUFF USA capital formation! cc @HesterPeirce @SECPaulSAtkins

But you don’t actually need new rules. Section 36 already gives the Commission the authority to grant exemptive relief for novel market structures. Someone has to be crazy enough to design a system that satisfies investor protections and argue it fails both prongs of 3b-16 of the 34 act.

@EulerLagrange @lex_node @HesterPeirce @SECPaulSAtkins But I’m also growing weary of their assurances that rules will be changed “soon”. It’s been a lot of empty promises over the years.

@_TomHoward @lex_node @HesterPeirce @SECPaulSAtkins Happy to make a $1k prop bet on the SEC greenlighting tokenized securities trading w/o a registered broker dealer or exchange in the upcoming innovation exemptions. Curious how confident you are in your read

15c3-3 tells broker-dealers how to handle customer funds. It doesn’t require anyone to be a broker-dealer. You’re right that the Exchange Act assumes intermediaries. But “assumes” and “requires” are different words. Intermediaries were the only technology available at the time. Section 36 exists for exactly this question. It’s how Reg ATS was born in 1998. Same problem. New technology didn’t fit the old categories.

I said without intermediaries dawg What rule forces it? My understanding is it doesn’t explicitly require it, it’s just in the only way we know how to satisfy the investor protections + kyc you end up with something that acts like a broker/exchange.

@EulerLagrange @lex_node @HesterPeirce @SECPaulSAtkins There’s nothing to figure out. It’s literally an SEC rule that forces intermediaries.

@_TomHoward @lex_node @HesterPeirce @SECPaulSAtkins @lex_node I’m pretty sure she says we will have trading of tokenized securities without intermediaries. Do we know who figured that out?

@_TomHoward @lex_node @HesterPeirce @SECPaulSAtkins Hester talked about it on a panel today as well. Here is a transcribed transcript gist.github.com/Hmac512/fdce74…

@jbrukh I am still in shock Hester said on a panel that we’ll have tokenized securities trade without intermediaries and CT still on the news from yesterday

I am still in shock that the SEC just made 85% of the market cap commodities and the market didn’t notice.

@NelsonMRosario @NelsonMRosario when i move back we can start BDE ventures

As always, #MoveToChicago

@0xosprey Not even at the peak yet

This is, without a question, the most exciting time to have ever existed as a human Do not take it for granted, anon

@dawufi get a real job

test — dawuficorp GTM agent pipeline verification. will delete.

Is something big happening tomorrow wtf is going on?

@teresagoody @SECPaulSAtkins @ChairmanSelig If the innovation exemptions come out would be a historic moment

So looking forward to talking with @SECPaulSAtkins and @ChairmanSelig about the bright future of our financial markets!

@colludingnode Not all tokenization is done this way 😉

Before being tokenized: asset is kept safely in a bank After tokenization: asset is kept safely in the same bank Total Tokenized Value can be increased with zero cost or risk.

“distributed network governance creates dynamic fidelity, …whereby…distribution of protocol update authority among independent classes of actors (validators, developers, users, [etc.]) produces emergent checks & balances analogous to constitutional separation of powers”

@dawufi @thepablob That’s because you’re in the jurisdiction that must follow it

@EulerLagrange @thepablob sounds like a rule

They made an @EulerLagrange bot. It’s really over now.

Didn’t read but title 100% true