Bitcoin (BTC) bull and Microstrategy CEO Michael Saylor says he considers proof-of-stake blockchain Cardano (ADA) to be a security.
In a new interview on the Altcoin Daily YouTube channel, Saylor says there is a distinction between Cardano and proof-of-work blockchain Bitcoin.
āMy opinion is Bitcoin is a digital commodity. I think that all the proof-of-stake networks are securities and theyāre all very risky. The regulators will decide whether or not they allow them to continue or whether or not they donāt allow them to continue.ā
Saylor then explains why he thinks proof-of-stake projects like ADA are securities and not digital commodities.
āThe token is a liability if itās not a commodity, and so fundamentally, this all comes down to an issue of ācan you establish your network as a commodity network?ā
To be a commodity network, there has to be no issuer, no initial coin offering (ICO), no central organization and if you study the history of Cardano, itās pretty obvious itās a security. It checks all the boxes, so I donāt know how you actually get around intellectually to convincing yourself that itās anything other than a security.ā
Saylor warns selling unregistered securities comes with potential legal consequences regardless of the tokenās technological offerings.
āTechnology wonāt save you though. Ultimately, if youāre selling a security to the general public without a disclosure statement, the fact that itās technically advanced wonāt save you from the securities liability, so I would say technology is not an issueā¦
The question is really going to be how will the securities regulators deal with crypto networks that are based on security tokens. I donāt know, itās not my business. Iām not in the business. I will leave it to other people.ā
I
Check Price Action
Don’t Miss a Beat ā Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/MassyCG