Wouuld Cardano risk being considered by SEC as centralized entity controls the hard fork combinator?
Wouuld Cardano risk being considered by SEC as centralized entity controls the hard fork combinator?
This may be a bad question, but if I understand correctly Cardano developers control hardfork combinator, which is super efficient for , but intend to move control to the community in the future, however in the short term it seems like that is a risk they run. I am a technological layman however and may completely misunderstand how that all works.
I believe the SEC will be giving grace periods to blockchain projects to achieve Decentralisation as it is not feesable to start an operation fully decentralised but it is something to work towards
Projects will have a few years to build the model and achieve decentralisation.
Why would the SEC investigate a foreign entity?
When it comes to the SEC… “centralization” is the least of Cardano’s problems. The main SEC question is whether an asset active in its jurisdiction (Cardano, XRP, etc.) constitutes a commodity, a security or a legal tender.
In terms of tech a digital asset can be all of the above simultaneously but in terms of regulation an asset can only be whatever the SEC and other similar entities say it is in their jurisdiction.
The hard fork combinator must be signed by multiple keys and several companies have this key. IOHK can’t do any change alone. They must all cooperate.