If Cryptos Are Not Securities What Are They In Financial Market ?

By Pekka Kelkka

Moi kaikki – hi all.

The major question from a regulations perspective is whether cryptos are securities or commodities.

Is there an alternative for these two?

Yes! Please read the text and watch the video until the end to know what’s the alternative.

Why does SEC Securities Exchange Commission want to classify all cryptos as securities?

SEC wants to control Crypto markets. They understand that cryptos will be a huge asset class.

It is all about power.

If someone can control or regulate the Cryptos as securities they can control the major part of financial markets.

Securities are financial instruments such as:

• Stocks
• Bonds
• Futures
• Derivatives
• ETFs
• Etc…

Do Cryptos on the list?

Absolutely not!

Are Cryptos commodities? Close but not quite!
Commodities are raw materials used to create the products.

Are Cryptos “raw materials” on decentralized blockchains, platforms, and services? Yes, they are;

Digital raw materials.

Without Cryptos decentralized blockchains, platforms, decentralized applications and services will not function.

E.g;

• Cryptos are data on smart contract blockchain protocols. Without Cryptos they don’t work. They don’t exist.
• Automated Market Maker (AMM) is a core function of Decentralized Exchanges (DEXs). Without Cryptos AMMs will not work.
• On Decentralized Finance (DeFi) platforms lending and borrowing processes will not work without Cryptos.
• Non-Fungible Tokens (NFTs) can not be minted (produced) without Cryptos.

Summarizing: Core is decentralization. Decentralized processes and mechanisms will not function without Cryptos.

Cryptos are “digital raw materials” to make decentralized applications and platforms function!

Ladies & gentlemen, friends & colleagues How to classify Cryptos.

Cryptos are…
DIGITAL COMMODITIES