Maybe im stupid, but i read that u can "register"

your "crypto security asset" by the sec. Maybe its not possible at all with coti idk, but that would be a banger right? IF u get accepted etc?

Stop being naive and parroting SEC speak. I understand most people don't read anymore, but it would only take a cursory glance at what's involved in doing so, which cannot be done with how crypto works, and maintaining that status if it could even be done. It doesn't help the cause of crypto in general, COTI or not, with people parroting that statement all over the place, "Just register. Just register." If no broker/dealer can even get a license after all these years to supposedly sell these, "securities" you really believe that any Crypto out there is going to be able to get this theoretical registration to legalize their offerings? If it could be done it would have been done dude. End of story. It cannot be done under the current framework. The statement, "Just come in and register" is propaganda made for consumption by people who only read bylines. Not reality.

if you get accepted as security you can only trade on a security exchange which does not exist

It's not possible with any of the crypto currencies. They are call currencies for a good reason as that's what are. At a stretch you might call them commodities but certainly not securities. Currencies are controlled by FinCen in the USA. As for registering let's take ripple/xrp as an example. They were sued by FinCen in 2013 for being an unregistered currency They lost that case in 2015 https://www.fincen.gov/news/news-releases/fincen-fines-ripple-labs-inc-first-civil-enforcement-action-against-virtual The SEC still sued them even though the USA government had already decided on their classification as a currency. You can be both a currency and a security at the same time. Even if you wanted to register as a security there is not framework to do so. Even the SEC commissioners admit to this on their own website https://www.sec.gov/news/statement/peirce-rendering-inovation-2023-04-12 You should take with a pinch of salt anything Gensler says. He's been shown to be inconsistent. 1. Applying for a job at Binance then suing them. 2. Saying multiple times that Algo is a great project run by a smart colleagueof his from MIT and brilliant work, only to then publicly call them a security. Lastly and most importantly SEC doesn't decide who or what is a security only a court or the project can do that.

Ye its deff a clown

In reality this is technically true, but not literally true. They de facto have open ended authority to declare you a security. It's one of those situations where if you don't have the a million+ (for a small case) set aside for a defense you'll crumble as soon as you get a Wells notice i.e. you lose by default on account of being too broke to fight. Since these cases drag on if you're a small enterprise by the time the battle is over even if you did win you'd be bankrupt anyway.

honestly sometimes im amazed how uninformed people are. Trust me, there is no way to register crypto as a security, cuz its not.

They can declare anything they want. But they have to sue and then only a judge or jury if it goes to trial actually make the decision. Think of it like a police officer who can arrest you for anything they wish. You may even be charged if the other officer behind the desk accepts the first officers claim However,you will forever be innocent of any crime until a judge/jury decides The SEC doesn't decide legally what is or isn't a security they just attempt to enforce existing laws (similarly to police) The SEC are 100% funded by fines received. They have to bring enforcement actions otherwise the agency ceases to exist.

These particular trials almost never get to a jury stage and are handled through summary judgment. You're making an argument that you would like to be correct, but you're dealing with a matter that is much more complex than you're letting on. The only other counter example of an agency that wins by default, no matter what, that I can give you is the IRS. Same situation. What can be done to you even if you can win or partially win your case is devastating. Trust me.

It seems to me like bigger things are at play, aka 'politics' and especially american politics can be unpredictable at best.

I'm not actually disagreeing with you. I was just clarifying the technicalities. I totally agree as about 98% of sec cases settle as you said. The SEC will also offer settlements with low fines if they ever see a loss coming as they are scared of precedent cases law against them being set. And as you said lots of smaller companies settle due to legal costs

Unfortunately the way that it works in the US is district courts 99 out 100 times honor previous rulings from judges within the same district, but it's not technically precedent. Precedent is only set by a court of appeals or the supreme court. If at the Federal level Federal precedent and if on a State level State precedent. Federal appeals/supreme courts obviously superseding State's courts in terms of constitutional rulings.