Updated on January 9, 2023 12:50 PM
This announcement commemorates the third anniversary of the Web3 Foundation's first engagement with the United States Securities and Exchange Commission's ("SEC") Strategic Hub for Financial Innovation ("FinHub") in response to FinHub's public invitations to digital asset-related projects to "come in and talk with us."
According to the Web3 Foundation, DOT has "morphed" from security to software, possibly fulfilling the same goal as Ethereum did. In the past, the SEC used the term "morphing" in digital asset regulation.
The Foundation argued,
"W3F met regularly with the SEC and attempted to break new ground and comply with U.S. federal securities laws, with respect to the offer & sale, marketing & delivery to initial purchasers & treatment of retail purchasers, in line with public companies."
Noting that the regulatory atmosphere was "tight" in late 2019, Web3 Foundation addressed FinHub about the problem, taking the SEC up on its invitation to come in and discuss.
The official objective of the Web3 Foundation was to envision a web that would eliminate the human conflict of interest between authors and users of online content and services.
Web 3.0 was to develop a new internet infrastructure that could offer citizens a constructive alternative to Web 2.0 but in a more secure, decentralized, and privacy-protecting format.
Daniel Schoenberger, W3F's Chief Legal Officer, noted in a blog post:
"In November 2019, the digital asset regulatory climate was tense. When W3F first approached FinHub, the SEC had recently filed its complaint against Telegram, and the FinHub staff's Framework for "Investment Contract" Analysis of Digital Assets had been published."
He went on to say that their experience had been "excellent." He also believes they have devised a feasible theory for transforming a digital asset from security to something else.
"Consistent with the views that we have shared with the SEC staff, we are pleased to announce that DOT, the native digital asset of the Polkadot blockchain, has morphed. In our view, current-day offers and sales of DOT are not securities transactions, and DOT is not a security. It is merely software."
The Securities and Exchange Commission has not yet responded to these remarks.
Today, the value of DOT has increased by around 6%. Its market capitalization is around $7.8 billion.