February 18, 2022
Hello,
I have a question regarding the legal definitions of exchanges and tokens/coins.
For example, some coins/tokens present themselves as more traditional financial(tradfi) products, like interest bearing deposits, loans, or other derivative products familiar to tradfi regulations that make clear \"investment promises\" like margin, futures, etc. Other tokens misrepresent themselves as investments in folly or with fraudulent intent.
Still other tokens are legitimate projects,
and more like collectible items, such as stamps, old toys, limited edition books, etc. or even like \"arcade tokens\" where quarters are exchanged for tokens only usable in that arcade, or in that token's app.
Similarly, items like collectibles such as stamps, books, etc certainly fluctuate in \"market\" value, and have very enthusiastic groups and also focused peer-to-peer \"exchanges\".
It's clear to me that some tokens and financial products are intended to represent a digital version of traditional financial products subject to regulations.
However, it's also clear to me that some tokens are nothing like existing regulated financial products, and much more limited in use like arcade tokens or collectible items, both of which have no SEC regulations, correct?
My question is, making no overt \"investment promise\" (as even some serious antique collector's will do) would a public peer-to-peer site similar to craigslist still require SEC registration only because the collectible items exchanged are encrypted computer code?
Thank you.