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Gungun Bhatia
Nov 5, 2022
by Gungun Bhatia

W3F Says DOT Token of Polkadot Blockchain Is Software, Not Security

W3F DOT

Table of contents

  1. W3F Statement About DOT
  2. Collaboration with FinHub
The organization guiding Polkadot's research and development efforts and financing initiatives for the blockchain, Web3 Foundation (W3F) has claimed that the US Securities and Exchange Commission shouldn't classify the DOT token as a security subject to its legislative jurisdiction.

W3F Statement About DOT

Daniel Schoenberger, chief legal officer of the Web3 Foundation (W3F) Team, stated in a blog article on November 4 that DOT, Polkadot's native token, had "morphed" and was now "software" instead of a security. Following conversations started in November 2019, Schoenberger stated that the assertion was compatible with the opinions it had expressed with the SEC.

Schoenberger added that although the SEC's perspective was probably that the shortly delivered token would constitute a security, at least at the point of distribution, the Polkadot concept had not considered that the blockchain's native token would be a security.

Collaboration with FinHub

According to the CLO, the Web3 Foundation often engaged with FinHub, the SEC's fintech division, as part of chair Gary Gensler's ongoing invitation to cryptocurrency companies to come in and speak. The team created a workable concept of how token morphing may be performed for DOT based on the SEC's fears and American federal securities regulations, said Schoenberger.

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US Securities and Exchange Commission (SEC) Polkadot Web3 Foundation (W3F) DOT token
W3F Says DOT Token of Polkadot Blockchain Is Software, Not Security
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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