As Wall Street actions (Blackrock and Fidelity Bitcoin ETFs) are driving recovery in the crypto space, I prefer choosing a different topic for today.
Some time ago, Splinterlands SPS investors voted to pass a DAO proposal to allocate a considerable amount of SPS in DAO funds to list SPS on at least a major centralized exchange.
From the time of voting to these days, both Binance and Coinbase have been sued by the SEC for allegedly breaching the Securities Law in the US.
There is no guarantee how and when these lawsuits will end or if other CEXes will follow. Or if a similar position will be adopted in other jurisdictions.
From an explanation by the person in charge of putting this DAO proposal into practice some town halls ago, he was on stand-by for exactly this reason: regulatory uncertainty. Binance and Coinbase weren't sued by the SEC at that time.
I believe not spending DAO funds during regulatory uncertainty for listings on entities that will be 100% subject to scrutiny is smart.
On the proposal in question I voted NO (twice, both on the original and on the rewritten one). I believe most should have seen the direction things have taken with a tight scrutiny of movements between the fiat and the crypto world. So, centralized exchanges were obvious targets.
The good thing, I guess, is that if funds won't be used for a year, a new proposal must be submitted and passed.
I believe if the vote would be taken again today, after the lawsuits against Coinbase and Binance, the outcome would be 'no'.
To me it seems that neither one of them should be pursued since the outcome of the lawsuits can be pending for years.
As for smaller ones, I don't know what to say... Things are very complicated for CEXes. I see they started to apply for licenses in individual jurisdictions. That's a lot of licenses to apply and be approved for. When this will be over, any CEX left standing will be the equivalent of a bank. But which ones will be left standing?
Trying to get SPS listed on a CEX at this time seems a bit like gambling on which horse will win the next race.
Plus, Splinterlands may want to not draw too much attention to SPS from the Securities Overlords. While circumstances are different, we saw they are pretty quick at grabbing and pulling everything they can under their umbrella.
Any thoughts on this matter?