The Web3 Foundation, which supports the Polkadot protocol, has once more presented its argument that its native DOT token is not a security. The Foundation reminded the world that, in its eyes, it has conformed to SEC requirements and DOT should no longer be considered a security.
In a recent Twitter thread, the foundation insisted on its Efforts to comply with the United States securities laws, and Securities and Exchange Commission guidance concerning the digital assets, and declared that DOT had successfully “morphed” and is software, not security.
The Web3 Foundation reposted an excerpt from a December Twitter Space where Angela Dalton, who is identified as an adviser to the foundation, described how representatives accepted the SEC’s invitation to “come in and talk to us.” Consequently, the foundation said:
“The Foundation made sure the SEC’s full vision of token morphing was addressed, […] as well as taking steps to manage the distribution of the DOT token so that no individual holds a large percentage of the network, turning down purchases from VCs interested solely in investment purposes, and promoting the tech but not the token.”
The foundation concluded:
“The Foundation is confident DOT has morphed and is not a security. It is software.”
Polkadot is a multichain protocol that had up to 66 blockchains operating on it and its Kusama parachain network as of October 2022. The Web3 Foundation was launched by Gavin Wood, a co-founder of Ethereum, and released the Polkadot white paper in 2016. Polkadot completed its unveiling in December 2021 when it rolled out parachains, based on a Medium post.
1/ @Polkadot's native token DOT is, and always has been, co-ordinating software. Following W3F's announcement on DOT morphing into a non-security, read the thread below to learn how DOT was able to morph, what Polkadot is, and the primary goals of the network. pic.twitter.com/sAnU56GnIh
— Web3 Foundation (@Web3foundation) January 26, 2023
The Foundation said in the post:
“Our experience has been a positive one. The SEC has welcomed meetings with the Web3 Foundation, and there has been a spirit of open communication and dialogue.”
The Web3 Foundation first declared DOT a non-security in November. Its position has so far not received confirmation from the SEC. The Foundation’s argument echoes the key points in the SEC case against Ripple. ‘Morphing’ is a concept that was put forward in a speech that was delivered by former SEC official William Hinman at the Yahoo Finance All Markets Summit in June 2018.