Polkadot restates its case that DOT has ‘morphed’ away from security status

The Web3 Foundation, which supports the Polkadot protocol, has again presented its statement that its autochthonal DOT (DOT) token is not a security. In a Twitter thread, the instauration emphasized its efforts to comply with U.S. securities laws, arsenic good arsenic Securities and Exchange Commission guidance connected integer assets, and declared that DOT had successfully “morphed” and is software, not a security. 

The Web3 Foundation reposted an excerpt from a December Twitter Space wherever Angela Dalton, identified arsenic an advisor to the foundation, described however representatives accepted the SEC’s invitation to “come successful and speech to us.” Subsequently, the instauration claimed:

“The Foundation made definite the SEC's afloat imaginativeness of token morphing was addressed, […] arsenic good arsenic taking steps to negociate the organisation of the DOT token truthful that nary idiosyncratic holds a ample percent of the network, turning down purchases from VCs funny solely successful concern purposes, and promoting the tech but not the token.”

“The Foundation is assured DOT has morphed and is not a security. It is software,” the instauration concluded. Polkadot is simply a multichain protocol that had 66 blockchains operating connected it and its Kusama parachain web arsenic of October 2022. The Web3 Foundation was founded by Gavin Wood, a co-founder of Ethereum, and released the Polkadot achromatic insubstantial successful 2016. Polkadot completed its motorboat successful December 2021 erstwhile it rolled retired parachains, according to a Medium post.

1/ @Polkadot's autochthonal token DOT is, and ever has been, co-ordinating software. Following W3F's announcement connected DOT morphing into a non-security, work the thread beneath to larn however DOT was capable to morph, what Polkadot is, and the superior goals of the network. pic.twitter.com/sAnU56GnIh

— Web3 Foundation (@Web3foundation) January 26, 2023

“Our acquisition has been a affirmative one,” the instauration says successful the post. “The SEC has welcomed meetings with the Web3 Foundation, and determination has been a tone of unfastened connection and dialogue.”

Related: Staking connected Polkadot, explained

The Web3 Foundation first declared DOT a non-security successful November. Its presumption has seemingly not received confirmation from the SEC. The foundation’s statement echoes cardinal points successful the SEC case against Ripple. “Morphing” is simply a conception put guardant successful a speech delivered by erstwhile SEC authoritative William Hinman astatine the Yahoo Finance All Markets Summit successful June 2018.