Heated Exchange Previews Blockchain Showdown Over Cryptocurrency ICO Token Regulation



the New World Order that is under construction it's a world of smart cities driverless vehicles artificial intelligence robots and virtual reality there is a major change coming not just to the way we operate but to culture itself is something called the blockchain country should be your insurance let me be clear there is no such thing as that utility token as we sit here today the SEC is said that the CFTC is setting I have been in every cup it's just I usually get booed off the stage in the early years when I said that and now everyone's come around to my way of thinking why because I started the lawsuits and since I as a woman I am a tiny little guy ih office and struck ball in Coral Springs Florida whoo parkland for the year those of you know what's going on this week that's my hometown a little more reserved today than normal but I even little lawyer in the last year and a half the largest law firms plaintiffs law firms in the country have joined my cause and the Tazo states we're now doing the capital the council plaintiffs motions the biggest law firms in the country are moving the little guy like me out of the way and taking over they're here for a reason because the way all of this happened it happened with how it happened without the right set of rules because they're not in place but unfortunately there is law currently in place you can't ignore what's currently in place so for people who want to say and this was a utility took an argument for the last couple of years a total s six months utility token argument was we are providing a specialized service well know everyone who's giving you money was giving you money to get that token to sell that token on the secondary market and make money doesn't matter I didn't cut you off by saying all the others it's the investors were doing it to make money if the purpose of the token was to true utility lawyers wouldn't be taking payment for in tokens people the employees would be taking payment in tokens the tokens clearly had that there were lawyers were going to the SEC is going after the lawyers the lawyers are going to be now take much lawyers the go ahead they're gonna hit the ones that took 250 to $500,000 to do an ICO project and then took 10% of the tokens when they told everyone they're servants or utility tokens and have no value but warriors didn't need to take those utility tokens if they had no value they took the utility tokens because they believe they have value and they were securities now moving forward can we change the rules yeah can we change the rules and do it better absolutely I embrace that I used to be in Washington DC where the world's largest law firms for ten years the world's largest lobbying law firm obviously they come in and they're going to lobby Congress they're going to move the ice do space there's a lot of money in the space right now they're gonna do new homes should there be new laws then make utility tokens security tokens now out now the CFC CCF SEC arguments a little bit different that really isn't a token argument that's yours jurisdiction on trade so from that perspective the whole should change it should you know we're using text from 5060 years ago it's ridiculous so the law should be should change should be raised I'm guessing 12 to 24 months we're gonna see a slew of SEC CFTC action probably means that it's going to be another two to three years from today that we're gonna see new regulations pass I would actually look at these inside parts of lawyer in the space you actually call this it's the speed regulators Texas North Carolina New Jersey who are actually leading the way I look for the states to be the ones leading the way but that's your tune in your view is there would be an optimal utility token out there how you define that and how it's supposed to get traded and so I can go and probably everyone loves to use the airline Madison they say will the airline miles of the equipment you get by all to use the – well no because right now if American Airlines decided to sell it token where you've got miles today not how you achieve the miles flying I think nothing through your credit card usage but they decided like Kodak rather door decided let's do an icy up code I heard attorney is now planning an ICM all these companies have been irrelevant for years gonna do an ICM and get relevant again so if the airline's decided to sell a token that gave you miles that can only be used on that airline could it be resold that would be the utility token due to the utility the problem is now the utility aspect the problem is people are investing in the tokens to resell them on secondary and tertiary market so that's in 10th doctor that so that's very different in theory I could go and buy a whole bunch of America miles on one of these exchanges and I heard I could hoping that one day they'd become more relevant understand press releases come on a TV oh that's good quit that's a quite like where is the gray area air and how do we know the gray area is simply right now it's making an offering itself you are making an offering its selling any token just so I grow in the room understands us I love how to do social to think that little pals are great I have another regulatory lawyer I certainly represent investors under money stole sure I can I can yes I know I in the order and people ask how do you do a good ice endless the better the first question be on it don't steal money liver on your product be good people that's the way you run a good idea so L going back to the regulatory question the regulators are simply catching up there to compare it to the airline miles again the airlines aren't going out selling the tokens today in a subscription-based with rim you were trying to sell it to get a subscription-based agreement for a market it is brand-new in the last two years it's over there the rules have to change how much automated rules I'm strictly enforcing old rules on the books the big cents so I think the purpose is for new money how you do it you have to play by the rules the currently exist get the rules change I support changing the rules telegram for instance is doing a different type of life of ICM they are not allowing investors just to go on their website and subscribe there were processes there was waiting time so it's transparency there's different things that's the way we're living it what one thing that you mentioned and in some businesses what Kodak have been irrelevant for years right and irrelevant see has a definition maybe there was a ball tonight maybe there were so many layers one thing about the product is there or addressing the problem of copyrights for example that has been there forever you are as a photographer you create an art for picture and everyone can steal it because it's really hard to buy the right from you it's just inefficient even if I want to be on it and use that picture in my website it's really hard to find the creator of that picture and paying him very minor fee but in doing everything correctly I don't I don't know if they talking really addresses were smart contractors it smart enough to aggressively or effectively can address that issue but the problem is real maybe maybe that's why you know that company or any other company has been relevant for years because the old systems old regulations all back off the services and are not covering this problem which is a new problem I really don't want to talk about my personal case but they me it may help you to understand how it realized we need for good fantasy after seven years of R&D try to bridge to this and give you time to talk to I apologize those questions it seems to me that if the token is being used intrinsically in the business and you're not acting like it's an IPO or a funding mechanism it's different and that that to me is what I'm what I'm gleaning here and the problem is that if you're a business and you're trying to make money and you're you're gonna be found the way to use a fokin in your business unfortunately there's such an opportunity because everybody wants to invest in it that you're almost committee business malpractice by not taking the money but then you may be committing legal malpractice by taking it and then what they've been saying is we had to go beyond us but you don't want the reality is businesses don't always go up sometimes they come down and were you dishonest if people decided not to buy the product or service so if the great areas are just building and even though there's a liability it's I think we poker anyone want to quote me on twitter cryptocurrency seems to be the biggest gift to the legal community in the history of the world from what I'm understanding here because the levels of complexity so it's not just great so the world we live in technology is way ahead of regulation it's not just in cryptocurrency it's and all technology so the output so what's going on here is that we're way ahead of the regulation and I'm sorry David but what really gets me is if you go after every lawyer because they made they've helped their client make some decisions and innovation may try and give opinions and try to go through the law and doing their best to interpret the law as it totally doesn't fit in this schema if you got that will never have innovation we will stick with what we have we will never see anything going forward and so you can't blame the lawyers the lawyers who are helping their clients are trying to help the innovation yeah they're making some mistakes along the way maybe perhaps but and there's definitely some stupid people and maybe some good people that are getting caught the middle losing some money but those people need to do their due diligence to and so they're investing and they should be doing their due diligence and so that's kind of what this reminds me a lot of the housing crisis in Moody's was rating a lot of hassle what we look at now is absolute garbage mortgages as triple-a and they were not found liable because they was freedom of speech so I wonder if there's any implication and just to be clear that's not even silver who's saying that that was chairman of the SEC gee clean didn't even silver that he's going into the lawyers the lawyers the accountants and the professionals that's the chairman of the SEC David Silver's just saying I agree with the chairman of the FCC so you can't say this is me this was at the congressional hearings it's what he's been saying consistently for two months next one moment it's almost to the point the humming he is not literate exists or not or they still until they until is a utility token if you are taking it as a form of payment not just because you believe security so if a lawyer takes it the lord pronounces a token in 2016 a utility token but an exception is a payment that's my complaint they're accepting like I can argue that it was in discount discount it has potential value but I don't really know right you're not the Boyer representing the company who's doing the ICL yeah well we had I'm sorry there's two questions why don't we you in the front row please yeah so my James Tague I'll repeat the question okay so I I'm an entrepreneur stuck in the paying thousands of dollars and hours outdoors now legal advice which currently in the current markets Tony Randall why it changes rapidly so clearly entrepreneurs are looking for money which means they're raising money which means they're doing some form of security transaction at the end of the process you want to create something that would mediate micro transactions now moving stock certificates around to mediate micro transactions is pretty tough so the question is how do you get from raise some money to generate a token to make a token that can be used to mediate Mountain micro transactions in a regional back because the two types of things sort of don't join it the bridge actually micro transactions and micro settlements are the best suited spot of cryptocurrency and I agree I think that securities is the perfect place for watching I mean at the end of the day stocks you know they shouldn't take three days to clear they should be instantaneous the d-triple-c I mean this goes back to the pack I am a regular bird but be I believe in the technology and the stuff you know I think financial transactions those markets are where we're heading if I was in it I was an entrepreneur if I was Duke if I had any technological intelligence which I don't I do putting my forces in fists there's an entire the entire securities world is going to be it's gonna be a revolution in the next three to five years you know banking stops especially stock transactions the way stocks are transactions occur today there are king the blockchain we've solved that's a great platform so muscle ransom to terrorists thank you okay and how companies have be treated with really real penny stocks or not but Belfort and those companies and in the same type of arguments we're being made back then about well if you stop these ups if you stop public Belfort is doing well these can be something you stopped with innovation but they are able to go in by what was drill was not by basically showing what was happening for example for me is actually pretty easy you know so so you know I'm so it's like really this is ironic to thought is the guy commenting on cryptocurrencies now I mean there's irony so I think the question is great because there are lots of legitimate companies to training OTC their penny stocks pic series for right now now they were down to five cents to share there are great companies that are in the IC o—- space I think this is where we go that's what we griddles later the great there are great stuff I agree do I tell everybody I get pitch to do I see us as mine a mine I see L hedge funds all the time I came within one day dude due diligence and identify 99% of the companies I look at maybe I have a hundred I can throw out for non investment due diligence just on comprehensive person searches of the people involved that leaves one percent in my mind legit I think differentiates smarter people that mean they can look at the code that can look at the Internet today so I believe I completely agree with you identifying the legitimate fighters people this is where I think the three of us you know that there the space I'm a proponent for the ICO of modern is just getting it right and there are so many ways to do that I am NOT here to tell you this is I think that way maybe the panel should offer a few small tests or in some our experience metrics for audience to recognize a big I feel right to me if an IC o—- doesn't have cap and doesn't have a band for spending that money you know if they're raising two hundred million dollars which is a taxable revenue their only concern is spending that money imparting as much as a chance you know send a smaller check to address at the end of the year they're not thinking about technology they not development they not talking thinking about innovation and that's to me as an investor is a huge no-no if I don't see a tab a reasonable cap on that IC o—- looking at the code at the github looking at but it won't talk or you know other forums when the developers like you and others rein in those eyes Neos these religions can be done very quickly looking at the team and an underlying technology the investment that has gone through that in their company for maintaining the risk of the future investors these are all great metrics that we should look into as the audiences I'm sorry but I want to make sure Morgan to participate as much as possible but I can shed some light on this Susan you want to utility token have no fear eventually there will be utility how is that going to happen they're separately as one is Meg your token to the dollar then you offering precepts all those monies get alternative here doesn't exist that solves every problem you have your micro transactions with your token you don't have to worry that if they make some of those tokens to the attorney that is accepting them right and I've seen high seers who are hoping under those losers or bitcoins that they're raising because liquidity is not at least he and many banks that don't even accept the are superseded so chanting a $3 is not an easy thing it takes forever and it's not all academic yeah accepting it yeah there are other rules would have to stick with it such as you are the only person if you buy back my token for the purposes of talking a harvest commentary it is usually too it's not on the street also area American Airlines that's not being traded options change it's not being accepted today and it's not being accepted under the pretense that next year it's going to have five times the amount of value into us today doesn't might become officially technical technology issues all of your problems we had that's what you presume to be so that's what we the SEC to come up with clear canal would you say let my token to be utility I let it flow in the system utility but you all wanted to early call it security and our division will be all security as long as there's a chance that your token token value as your networks popularity increases that's the SE C's thinking it's never going to change I employ the popularity of the network goes up because there's a high esteem and we utilize that token that elationship will increase the volume the use of the trophy yeah this is the market power and and because there's a relationship between the value of the token and the use of your network it's the same thing as job at a company companies more popular exactly therefore of course one thing that is important is ecosystem economy 1099 economy would you name it all these you know network effects and stuff there are lot of micro payments right the stock is different tokens but they need to exchange it right and we can either quickly able they don't want to wait before they exchange like more for 25 cents of the tokens right we really need to come up with some guidelines and regulations I don't say that in securities commodity or utility now right with as an entrepreneur on one white line well I salute you need to present a necessity to get separate the commodity study also yes it's a great painting to the dollar beat sense because there's no way you're gonna fight fedley most likely yes we have exploited I told everybody they back at the gold in the SEC someone who mentioned that this stuff of coal I think the SEC wants that they wants to pay into the dollars the same the same you know I I have been pitching people not targeting them I think if you walked in the SEC you said there's a 50 million dollars go we're gonna pay I would talk into the goal it's these things that we has to it has to be a novel approach but what I am certainly going back to what's one way you can tell an IC o—- if it's fraudulent on my red flags if you ta in a group of people who are all US citizens and they turn around and they try to move the token and the fundraiser outside of the country but they are going to bring money back into the country I question every single IC o—- and this goes back to tasers and the bright mint and I say this all the time it is an atrocity it is disgusting that they claim those those investments for donations and I and this was back to the thousand dollar an hour lawyer Perkins to me whether the hope that's not me paying $1,000 tip there associate is trying to be in the lead plaintiff in adhesives case and as soon see the perkins who claims to be is cryptocurrency expert has he now claims enough security and not utility or a donation or whatever they're calling it but you should look at what the money trailers if the money is going in the u.s. outside the u.s. back to the u.s. they're doing it for they're not doing it for your benefit they're doing it for that will no longer spend money now regulators are all over that I think maybe a year ago they really were people were trying to be I suppose really should be wrapping but we have one more quick question I think that there is on hand yes like I said his final discussion should be put down the mighty sat to the SEC the leadership well it just to be clear after last week there was a regulatory filing brother Congressional subcommittee I myself will be speaking in front of Congress in about six weeks on the issue the subcommittee's in Congress are starting to get into this but I said this earlier be very temperance the state legislation sees right now who are the most active and they're going after the they're going after different IC o—- different companies but the state is the state regulators we're gonna do this by the way or it's only lawyers and legislators well actually this week was all companies the lawyers as we're gonna have to wrap Eric is actually gonna don't go anywhere this our hair it's gonna wrap up in conference but please give them a hand

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