[ppml] Securities Act 15 U.S.C. 77b(a)(1)

Bill Darte BillD at cait.wustl.edu
Tue Mar 11 11:43:34 EDT 2008

> The Securities Act defines some terms in order to state what 
> is and is not covered by the act. The definition of the term 
> "security" is found in the section referred to in the 
> subject. I used Cornell's online copy of the U.S. Code in 
> order to read what I hope is the current definition.
> You can check that out here:
> <http://www.law.cornell.edu/uscode/15/usc_sec_15_00000077---b0
> or if you want to knock yourself out, you can find all of 
> Title 15 here:
> <http://www.law.cornell.edu/uscode/15/usc_sup_01_15.html>
> It seems to me that the definition does not clearly exclude 
> the trading of IP address contracts as some members of this 
> list envision it. That means, that ARIN policy in this area 
> could potentially create a new type of security or security 
> derivative whose trading is regulated by the SEC.
> It would be interesting for ARIN to find a legal expert in 
> the area of Title 15, particularly Chapter 2, who could 
> explain what the definition means, and where there might be 
> boundaries which ARIN policy must NOT cross if ARIN wishes to 
> avoid regulatory scrutiny by the SEC. In addition, depending 
> on how clear the case law is in this area, the legal expert 
> could explain whether or not ARIN should ask the SEC for a 
> ruling on the situation before proceeding with policies about 
> IP address trading.
> The definition of "security" from Title 15 is as follows:
> (1) The term "security" means any note, stock, treasury 
> stock, security future, bond, debenture, evidence of 
> indebtedness, certificate of interest or participation in any 
> profit-sharing agreement, collateral-trust certificate, 
> preorganization certificate or subscription, transferable 
> share, investment contract, voting-trust certificate, 
> certificate of deposit for a security, fractional undivided 
> interest in oil, gas, or other mineral rights, any put, call, 
> straddle, option, or privilege on any security, certificate 
> of deposit, or group or index of securities (including any 
> interest therein or based on the value thereof), or any put, 
> call, straddle, option, or privilege entered into on a 
> national securities exchange relating to foreign currency, 
> or, in general, any interest or instrument commonly known as 
> a "security", or any certificate of interest or participation 
> in, temporary or interim certificate for, receipt for, 
> guarantee of, or warrant or right to subscribe to or 
> purchase, any of the foregoing. 
> --Michael Dillon
> P.S. In case you hadn't noticed, I am not a lawyer.

Then why are you playing one on TV...I mean ppml....

I am also not a lawyer, but see nothing in the definition that comes
close to what I see being proposed in the transfer policy update

And, ARIN Counsel, who is a lawyer has already weighed in on this in an
informal way suggesting a similar opinion that the SEC is unlikely to
take interest.

Bill Darte

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