Polkadot will not receive a case like XRP

U.S. The Securities and Exchange Commission (SEC) occasionally seems to be on some sort of crusade to classify everything under the sun in crypto-land as a stock. XRP First of all, but it doesn’t stop there. Polkadot (DOT) may also be visible. But the Web3 Foundation (W3F) disagrees.

W3F: DOT is no longer an effect

A Blog The organization writes that it believes the DOT is no longer a security or a stock. That may have been the case once, but the situation is different now. Since 2019, the foundation writes that it has put a lot of effort into ensuring that the coin falls into the correct category. For example, crypto companies have accepted the SEC’s invitation to come and discuss regulation.

W3F worried that Polkadot would be crowned. The structure behind In 2017, Network A Initial coin offering (ICO) In America. But by selling the token to fund the network’s growth, the SEC is quick to view the coin as safe.

So the Foundation consulted with the SEC at length about the best approach. Last Friday, the organization revealed that Polkadot’s proprietary cryptocurrency DOT is no longer a security as it has been replaced. Instead, it’s “just software.”

The Web3 Foundation announces @polkadotThe native token DOT is morphed into a software, not a security!

After 3 years of progressive involvement with @SECGovW3F heralds a major step toward the achievement of Web 3.0, a decentralized, trustless, serverless Internet.

— Web3 Foundation (@Web3foundation) November 4, 2022

Notable Context: Calm Before the Storm for Crypto?

The context is significant. The trust actually indicates that the DOT has been a shareholder in the past, but it has narrowly avoided litigation with the SEC. But Polkadot’s approach isn’t that different from many other networks.

SEC has Coinbase investigated Because it gives nine different effects. Grayscale agreed With similar reasoning. So many more may follow after the Ripple case.