The privacy-focused crypto network Dash has responded to the US Securities and Exchange Commission (SEC)’s latest attack on the industry, claiming it is a security.
On April 17, the Securities and Exchange Commission (SEC) launched its latest splash in the war on cryptocurrencies. The target this time was Bittrex, which accused it of selling unregistered securities.
Bittrex decided to wind down its US operations earlier this month, citing regulatory uncertainty amid the crypto crackdown.
Among the six currencies that the regulator claimed were securities was Dash, a privacy-focused payments currency. The other five targeted tokens are the OMG Network (OMG), Algorand (ALGO), Monolith (TKN), NAGA (NGC), and the IHT Real Estate Protocol (IHT).
On April 18, the Dash community account responded, “There is no reasonable explanation that Dash can be called a security.”
It is a payments technology, not a security
The SEC frequently cites the old Howey test when it considers an asset a security. This means that he needs an investment contract and profit expectations from a joint venture.
The Dash community refuted this description, Mentionsed:
“There is no reasonable expectation of profits with Dash. It’s a payments technology. Miners get paid to mine, miners get paid to run the contract, but nobody gets paid to just hold Dash.”
He added that there was no group “promising efforts by others” to improve the protocol. It is ruled by a DAO who collectively decides its direction.
The rebuttal also pointed out several flaws in the SEC’s arguments. It said that the “Dash Control Group” was a fictitious entity, and that the Dash Core Group did not exist until 2017.
Moreover, Dash holders do not expect the masternode to make their profits because you cannot buy a masternode.
Crypto Rating Board Even rates Dash is the same as BTC and LTC in that it is less likely to be considered a security. Society concluded:
“Peer-to-peer digital cash is not a crime. Financial sovereignty is not a crime. Decentralized governance is not a crime. Privacy is not a crime.”
The whole thing seems to be yet another case of the SEC completely misunderstanding the technology and shooting from the hip on anything cryptocurrency related.
Dash price forecast
Prices fell 6% after the SEC’s action but have since recovered marginally. At the time of writing, Dash is trading at $58.96, with a decline of just 1.7% on the day.
However, the privacy token has been banned from a lot of centralized exchanges. As a result, it is still down 96% from its December 2017 high of $1,493.
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