In a recent interview with Fox Business, Dogecoin Foundation director Marshall Hayner took issue with the notion that Dogecoin (DOGE) is a security.
Pointing out that securities are generally financial assets with expected future returns and the centralized entities behind them, neither of which apply to Dogecoin.
Also, unlike other cryptocurrency projects, Dogecoin founders Jackson Palmer and Billy Markus did not amass a large fortune from the project. Hayner believes that Dogecoin is a fork of Bitcoin, and if Bitcoin is not, it should not be considered a security.
Dogecoin has received a lot of attention in recent months, especially after receiving endorsements from high-profile figures such as Tesla CEO Elon Musk.
Some critics, however, worry that Dogecoin’s lack of centralized leadership and a clear use case could lead to it being classified as a security under U.S. Securities and Exchange Commission (SEC) rules.
Hayner’s comments echo those of other Dogecoin proponents who believe the cryptocurrency was created as a joke and should not be considered a financial asset. Some investors were lured by Dogecoin’s low price and potential for rapid gains, causing its market cap to soar.
The debate over whether Dogecoin is a security highlights the ongoing uncertainty surrounding how cryptocurrencies should be regulated.
While some countries have established clear guidelines for cryptocurrency activities, others, including the United States, have yet to provide comprehensive regulation for the industry.
In the absence of clear regulations, some cryptocurrency projects have taken aggressive steps to establish their legitimacy.
For example, the developers behind ethereum have been working on a major upgrade to the platform that they hope will make it more scalable and efficient while addressing concerns about its energy consumption.