What impact will it have on SAFE Network?
It may well pave the way for US based equity crowd funding apps/sites to be put on the SAFE Network. Although the article suggests a reduction in red tape, it sounds like there is still a decent amount of paperwork required.
It only makes sense.
- Crowdfunding is targeting small investors
- Rentiers from this space (VCs, layers, etc.) fought to protect their positions
- Now crypto- (and other) crowdsourcing is allowed, but as long as it’s no different from the old system
That’s exactly how they like it.
Still sounds like a step toward getting rid of Wall st.
I suspect the big mutual funds destroyed Wall st. Their size means the big ones must invest in the whole market or every firm in the index with layer after layer of big mutual shower peoples money down on listed firms no matter what they do backed up by Wall st designed tax coercion. Once firms reach a certain size they need be converted to full employee ownership which excludes managers. Firms should really figure out how to get rid of management.
The article states:
“Online equity platforms will still need to be registered with the SEC as
"broker-dealers,” which means they will be regulated financial
institutions authorized to be middlemen in the buying and selling of
stocks, bonds and other securities."
@nicklambert is right, this is currently a big hurdle in the US for anyone wanting to start a financial app/site that could facilitate this kind of funding. Broker-dealers still are bound by laws to collect massive amounts of client data, meet capital requirements and will be neck deep in US compliance regs, but I am very anxious to see the possibilities of the network for financial security/privacy and investments and how it changes the current landscape, both in the physical and digital investment instruments! The wealth that can be created for individuals because of the functions of the Safe Network I think will be truely mind blowing!
That’s exactly it. You can invest in anonymous privacy enhancing ventures as long as you provide your full name, home address and photo ID to the NSA.
A potential workaround is to invest and then send trickle amounts to several new addresses one of which would be your real ID for the platform, but if they can track whereabouts of the coin, they’d just monitor all of them knowing who they need to beat up with a $5 wrench to identify all the downstream users.
It will be interesting to see how people cope with these issues. I can see a lot of opportunity for exchanges/investments/etc that take place completely within the SAFE Network. “The Man” may be able to track funds into the network, but not having access to who is doing what with them once they get there is going to blow holes in their current model of metadata pillaging and overreach! Always makes me chuckle to watch the innovation out-pace legislation.