Definition of a security in the US based on the 1933 Act:

any note,
treasury stock,
security future,
security-based swap,
evidence of indebtedness,
certificate of interest or participation in any profit-sharing agreement,
collateral-trust certificate,


preorganization certificate or subscription,
transferable share,
investment contract, (⬅️⬅️⬅️ that’s a big one)
voting-trust certificate,
certificate of deposit for a security,
fractional undivided interest in oil, gas, or other mineral rights,
any put,

or privilege on any security,
certificate of deposit,
or group or index of securities (including any interest therein or based on the value thereof),
or any put,
or privilege entered into on a national securities exchange relating to foreign currency,

in general,
any interest or instrument commonly known as a “security,”
or any certificate of interest or participation in,
temporary or interim certificate for,
receipt for,guarantee of,
or warrant or right to subscribe to or purchase,
any of the foregoing.

This definition is broad and covers a wide range of investments — investment contracts alone cover a variety of types of instrument.

Many good investment structures will fall under this broad definition — trying to avoid the definition restricts the investment significantly

Stripping out the terms that make something fall under the definition just generally creates a weaker instrument— the far better idea is to plan for compliance with the regs - it can be hard but it’s better than offering a low quality investment

The idea that you can just ignore the regs because of “decentralization” doesn’t hold up & isn’t workable

Securities are already centralized — the exciting work will be making the movement & trading decentralized - but this will only work in the US if it’s compliant


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More from @brucefenton

23 May
As recently as the early 90s, investors had little idea what their portfolios were worth on a daily basis. Stock quotes were published in newspapers. Only professionals had real time stock quotes. To learn your account balance, you had to call your broker or wait for a statement.
Statements came out quarterly in most cases. Monthly statements were uncommon - and remember, this was all by physical mail.
Day trading was far more rare than today.
This created more long term thinking for many investors.
Wise investors had a plan and would stick to it.
Today we have a plethora of information we can access & act on instantly. Those who make money from this model encourage active trading, but it is antithetical to sound investing. Looking at your account daily & trading daily is more often a formula for ruin than wealth creation.
Read 7 tweets
4 Apr
Some don’t know:

Muslims believe in Jesus.
In Islam, Jesus Christ is considered a prophet who’s name is followed by “Peace be upon him”. Jesus is in more verses of the Koran than anyone other than the Prophet Mohammed. Muslims also believe Jesus was born of the Virgin Mary

2) and that Jesus healed the sick. Many Muslims are named after Jesus and Mary.
Where Christianity and Islam differ most on this is that Christians believe Jesus was the son of God, died for our sins and was resurrected
many Muslims believe he was more of a spiritual son of God
3) and believe that his death was not for our sins. The Koran says that Jesus was crucified but not resurrected but people were led to believe this — what this means interpreted various ways- some Muslims believe Jesus did come back three days later but it
Read 7 tweets
12 Feb
I’ve only been out in the world less than 10 times in the last year. Worn a mask less than 10 times.
Went out yesterday.
People have gone nuts. The masks, the signs everywhere, restrictions; the general mood. Businesses closed everywhere. It’s an authoritarian hellscape.
Totally nonsensical and non-scientific wackiness in the name of “science”. I heard you can get a massage or facial but you still have to wear a mask - that’s just pure nonsense. Wearing masks when jogging or walking alone is insanity.
We have kids in schools with useless plexiglass barriers - arrows drawn on the floor telling people where to walk. People being arrested for walking down the street. Vendors refusing US dollars with the excuse of concern over inflection.
College kids are getting tested weekly.
Read 12 tweets
31 Jan

Send your champions - I will debate anyone on this.

It’s a complex topic not well suited for tweets.

But yes, much of this is solved by DLTs.

Root issue is a bad ledger & trusted 3rd parties.

A database can’t fix this.
A database is what we already have on Wall St and it’s a mess.

Understanding how to fix it first requires understanding how it works now (it’s counterintuitive). It’s a mistake to assume it’s an easy fix with “a database”.
A solution has to solve the problem of hundreds of various parties not trusting each other and complex high volume reporting and other factors.
It’s all about saying what is true in an untrusted environment.
Blockchains are actually good at that.
Read 8 tweets
31 Dec 20
1/ While the costs of public K-12 schools (average $16k / yr per student) is an astonishing ripoff to the taxpayer, it pales in comparison to higher education - a scam that has reached such epic proportions it may end up in history books.
2/ The College Board, US News & others publish various numbers but data averages from $20-35k for public in state schools to $35-45k+ for private colleges.

As with K-12 the spending is absurd.

A good chunk of this also comes from taxpayers.…
3/ Taxpayers support the public universities directly & taxpayers also support private colleges & the overall system through student loan guarantee programs & special spending.

Colleges don’t have to pay taxes like almost every other enterprise.
Read 17 tweets
29 Dec 20
Khan Academy is free. MasterClass is $180 a year.

The Zoom classes your kid is taking costs taxpayers an average of $16,000 per student, per year.
In California they spend over $20,000 per student for K-12 public school.

So a class of 20 students on Zoom costs the taxpayers over $400,000.
Lots of people who earn money from this system are offended at these posts which simply state the prices. Of course they are defensive... the numbers are damning. Everyone knows it’s a scam.

“But teachers are important / work hard” — not the point - the price is unfair
Read 16 tweets

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