The SEC released Report 21A, called the DAO Report, in 2017 as guidance on digital assets.
The Web3 Foundation, which supports the Polkadot protocol, says that the native DOT token is not a security and should be seen as software.
- Since 2019, when the Polkadot whitepaper was published, the W3F development team says it's in full compliance with the SEC and has successfully "morphed" and is software, not a security.
- Polkadot is a multichain protocol with 66 blockchains operating on it dubbed the Kusama parachain network.
- Angela Dalton, adviser to the W3F foundation, says the team has accepted SEC's invitation to "come in and talk to us."
- Web3 Foundation (W3F) says DOT does not match the requirements to be considered a security and is a software instead.
- DOT is a Layer-1 blockchain, ergo software for other companies to build their products.
- For DOT to be considered software, true decentralization has to be achieved.
- Polkadot focuses on building the technology infrastructure, not the token itself.
- Second, the entity has imposed restrictions on whales to ensure fair votes and governance.
- DOT is not available to hedge funds and venture capitalists interested in an investment.
- It is important to note that the SEC can still treat DOT as a security, meaning the label "software" can be seen as a self-certification by the Web3 Foundation rather than an official ruling.
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