Web3 Foundation Makes Bold Claim to SEC: 'DOT Isn't Security. It's Just Software'

According to CLO Daniel Schoenberger, the team has developed a "workable theory of how token morphing can be done" for the DOT based on SEC concerns and federal securities laws.

The entity supporting Polkadot's research and development as well as overseeing blockchain fundraising efforts has argued that the U.S. Securities and Exchange Commission should not consider the DOT token as a relevant security. of its regulatory jurisdiction.

In a November 4 blog post, Web3 Foundation Team Legal Director Daniel Schoenberger said the native Polkadot (DOT) token had "morphed" and was "software" rather than a security. Schoenberger said the assertion was "consistent with views" she shared with the SEC following discussions that began in November 2019.

"While Polkadot's view did not envision that the native blockchain token would be a security, we understood that the SEC's view was likely to be that the token to be delivered would be a security, du less at the time of delivery," Schoenberger said. "Whatever it takes for DOT, the native token of the Polkadot blockchain, to be – or become – non-secure, we were prepared to do that.” p>

Web3 Foundation announces @Polkadot's native DOT token has morphed and is software, not security!

After 3 years of proactive engagement with the @SECGov, W3F announces a historic step towards realizing Web 3.0, a decentralized, trustless, serverless Internet.

The CLO said the Web3 Foundation has met regularly with the fintech wing of the SEC, FinHub, under Chairman Gary Gensler.