Oct. 6, 2023
A decentralized cryptocurrency cannot apply to and should be exempt from the recordkeeping rule under the Advisers Act and to Form ADV for investment adviser registration under the Advisers Act and any amendments for the following reasons: 1. Decentralized cryptocurrencies are not securities. The Securities and Exchange Commission (SEC) defines a security as an investment contract. An investment contract is a security if it meets four elements: An investment of money In a common enterprise With an expectation of profits Solely from the efforts of others Decentralized cryptocurrencies do not meet all four elements of an investment contract. For example, decentralized cryptocurrencies are not common enterprises, and investors do not expect profits solely from the efforts of others. Therefore, decentralized cryptocurrencies are not securities and are not subject to the Advisers Act. 2. Decentralized cryptocurrencies are not subject to the SEC's recordkeeping rules. The SEC's recordkeeping rules require investment advisers to maintain certain records, such as records of their clients' accounts and transactions. However, decentralized cryptocurrencies are not subject to the SEC's recordkeeping rules because decentralized cryptocurrencies are not securities. 3. Decentralized cryptocurrencies are not subject to the SEC's Form ADV requirements. Form ADV is the registration form that investment advisers must file with the SEC. However, decentralized cryptocurrencies are not subject to the SEC's Form ADV requirements because decentralized cryptocurrencies are not securities. In conclusion, a decentralized cryptocurrency cannot apply to amendments to the recordkeeping rule under the Advisers Act and to Form ADV for investment adviser registration under the Advisers Act because decentralized cryptocurrencies are not securities. It is important to note that this is just my interpretation of the law. It is always best to consult with an attorney to get specific advice about your situation.